ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY REPORT, Friday, August 20, 2010
PSEI: 3,560.39, +25.45 pts, +0.72%; Value of Trades: php5.147B ; Adv: 73 Dec: 54 Unch: 37

OUTLOOK:

THE last day of trades for the week is a toss-up. Thus far, the market has defied
anticipations of a correction after having breached the 3,500-mark, initially on the
back of strong second quarter and first half results. However, with the earnings
season winding down and the ghost month having set in, we had expected a general
lack of leads to induce profit-taking and push investors to the sidelines. Thus far, the
opposite has taken place.

Through the first four days, the index has gained 90.87 points or 2.62%, with the four-
day daily value turnover average at php3.309 billion. This means that it will only take
half-billion worth of trades in today's trades to match last week's php3.885 billion
total, which in turn was roughly half-a-billion more than the preceding week's. The
market not only picked up, points-wise, but it has seen an increased turnover as well –
things not consistent with “ghost month” expectations.

Several counters are turning in good week-on-week profits. Over 50 counters have
returned more than the PSEi's 2.62%. About half of which gained 3x more or <7.86%.
Five advanced by 5x the market. However, of these five, only two, LPZ and MPI, were
accompanied by heavy value turnover. Financials, Property and Holding Firms have
outperformed the Main Index through the penultimate session of the week. These
are prime candidates for profit taking which could drag the index lower. On the other
hand, locals appear to hold fast to the optimistic outlook for the broad economy,
pushing them to either hold equities or add more to their portfolios.

TECHNICAL CONDITION: OVERBOUGHT, WEAKER TOP

We have continued to
be quite wary of the
market's level given
the underlying
technical condition
which is drawing up for
a pullback. This is the
context upon which
our caution to
investors against
further increasing
exposure to equities at current levels of the Main Index. RSI(14) is nearly tipping the
overbought 70-line while STO(10,3,3) has already made its breach after Thursday's
continued optimism. While these are not a “SELL-now” signal, it opens such window, particularly on a retreat and sustained break under the 70-
line. Given the current pace of trades, this (sustained break, SELL signal) anywhere between two to four days henceforth. STO, as already
mentioned has past its own overbought line, sustaining its break of the trigger line for a second straight session. But it is the divergence that has
developed between the PSE Index and the AccDist Line that heightens our call. (see chart). The AccDist Line at Thursday's 3,560.39 close is clearly
lower than the previous top when the index closed at 3,521.10 (August 5, 2010.) This means that even as the index climbed a further 1.11% over the 10
days, distributions have outpaced accumulations, leaving the market with less support at higher levels. Unless value-turnover picks up and
consistently pulls up the averages, the sustainability of the recent advance remains suspect.

CORPORATE DISCLOSURES:

Nihao Mineral Resources International, Inc. [pse: NI, php3.23, -0.11%]

The closing of the company's acquisition of an additional 60k shares of Oriental Vision Mining Philippines, Corporation (ORVI) remains on hold as the
latter has yet to complete documentary requirements pursuant to its application to increase its Authorized Capital Stock to Php400M before the
SEC. Further, the Competent Person's report on its Palhi nickel mine is seen to be completed by December this year, at the latest.

ORVI, established in 2008 and chaired by Salvador B. Zamora (with Fernando Borja as President and CEO) owns mining properties and operating

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO
OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS
FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE
SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS
REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE
INDUSTRIES MENTIONED.
DAILY Report Page 1 of 2
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY REPORT, Friday, August 20, 2010
PSEI: 3,560.39, +25.45 pts, +0.72%; Value of Trades: php5.147B ; Adv: 73 Dec: 54 Unch: 37

rights in Saranggani and Surigao Provinces. The Palhi Nickel Mines was projected to produce about 5 million tons of laterite and saprolite nickel ores
for the next five years with a confirmed mineable ore reserve of 3.3M metric tons. It's partnership with FS Borja Mining & Trading Corporation and
Adnama Mineral Resources Inc will develop the Dinapique Mine in Isabela Province and is seen to have the same production as Palhi over the next
five years. They are also a part of the development of the Abacus Coal Project in Tago and Marihatag, Surigao del Sur. (source: http://www.gmdu.net/corp-
580613.html )

While the stock is currently trading at relatively low levels suggesting a

HOLD, other indicators, at best, do not posit any buy signals. Given
further that the market's recent preference has leaned towards the
relative safety of fundamental valuation as their guidance, we do not
expect speculative and news-driven monies to enter aggressively.
Furthermore, in the MACD (12,26,9) chart [bottom], we see that the
line has pierced the trigger ine, opening up the possibilities of a break
below the php3.20 support. This leads to a retracement to levels not
seen since the issuer's 5-for-1 SRO late last year, with the offer price of
Php1.00. Adjusted ex-rights price at that time was at around php2.00.
Initially, we could be looking at a support near the php2.50 mark.

DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO
OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS
FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE
SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS
REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE
INDUSTRIES MENTIONED.
DAILY Report Page 2 of 2