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 _December 15-16, 2010
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
4,089.75 -58.28 -1.41% 919.05 4,096.73 43 98 36

Daily Wrap: SECTOR INDEX Pts Change % CHANGE

A LL 2,878.52 -17.02 -0.59%
THE PSE Index successfully tested the 4,070-support, which FINANCIA L 934.37 -20.47 -2.14%
quickly invited bargain hunters to narrow the session's loss to INDUSTRIAL 7,008.79 12.55 0.18%
-58.28 points (-1.405%) at 4,089.75. Alternatively, it failed to HOLDING FIRMS 3,325.89 -60.24 -1.78%
PROPERTY 1,519.77 -39.92 -2.56%
sustain an early break past the 4,150 resistance with SERVICES 1,524.46 -1.58 -0.10%
optimism tempered, and reversed by new developments in MINING & OIL 12,822.54 107.06 0.84%
the region. TRADES 13,579
In Php Millions As of 1594H 12/15/10
A brief foray into positive territory off the opening bell, riding A SIAN MA RKETS
on the Dow's overnight advance, fizzeled out as new COUNTRY INDEX LAST % CHA NGE
developments in the Asian region surfaced. With eyes staying JA PAN TOPIX 902.42 0.53%
focused on China's efforts to rein in inflationary pressures, JA PAN NIKKEI 225 10,309.78 -0.07%
CHINA HA NGSENG 23,016.78 -1.77%
Japan reported a dip in the measure of manufacturer's
CHINA SHANGHAI 2,911.41 -0.54%
confidence. The strength of the yen has eroded export gains TAIWAN TAIEX 8,756.71 0.19%
and as the impact of stimulus measures fade. This has raised SOUTH KOREA KOSPI 2,017.48 0.42%
concerns over a possible contraction in Q4, requiring further THAILA ND SET 1,036.69 -0.07%
policy and monetary interventions. The Nikkei ended the INDONESIA JKSE 3,628.06 -1.67%
session little changed, losing -0.07%. INDIA BSESN 19,716.80 -0.42%
SINGAPORE Straits Times 3,152.28 -0.78%
Asian markets were all down, except for KOSPI of South Korea MALAYSIA KLSE 1,506.47 -0.27%
and Taiwan, both posting rises of 0.42% and 0.19%, V IETNA M HO CHI MINH 493.47 0.78%
respectively. Korea, which early last month was considered a threat after the North shelled an island in it territory, reported
improvements in the domestic labor front, with unemployment narrowing.
Value turnover thinned to just a little over php4.0 billion. A substantial part of the aggregate flowed in through the final hour of
trades, with bets hinged on a sustained rebound off the 4,070 support.
Breadth was widely negative as between two- to three stocks fell for each that advanced. This gap was narrower however, from
the day's worst of nearly 4-to-1, as the index dipped to its intra-day low at 4,072.19.
A Look Ahead:

The slower value flow, coupled with the fact that the market fell, and managed to bounce off the upper edges of a support band,
should throw some positive light heading past the middle of the last full week of trades before the two-succeeding holidays-shortened
periods. However, the widening breadth drains the strength on any upside, or, alternatively, in this instance, confirms the negative
bias. The short-term view of investors has kept the index confined in the 4,050- 4,170 trading band and the absence of fresh leads
have favored a “liquidate-and-stay-at-the-sidelines” stance.
Coming into play are data on Consumer Prices and Industrial Production due out tonight. The latter is seen to rise to 0.3% in
November following flat growth in October. Capacity utilization rate is also anticipated to increase to 75.1% from 74.8% in the
month prior. Inflation is seen to be on level with with October's 0.2%, with core inflation marginally rising by 0.1%. (bloomberg.com
data) Both are seen to provide some positive spin to trades Thursday.
However, a potentially new concern has surfaced. Moody's has hinted at a possible cut in the Aa1 Debt rating of Spain, with the
institution raising concerns over borrowing costs, potential losses in the banking system and deficits in the country's regions. This has
sent European index futures lower. After the Ireland bail-out, global markets have been on edge on what other economies in the zone
will fall into the same trap – Spain and Portugal have topped the list.
Market sentiments will be driven by how Europe holds against this new development, and further how this development will impact
on US data out tonight.

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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.
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