ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY REVIEW & OUTLOOK_ TD039-40_February 24-25, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,730.84 -26.20 -0.68% 7,235.70 2,968.27 40 99 28

OUTLOOK for Friday: PHILIPPINE MARKET, DAILY STATS

SECTOR INDEX Pts Change % CHANGE
Despite a five-day slide totaling -135.58 points [-3.51%] ALL 2,847.27 -47.66 -1.65%
FINANCIAL 820.93 -2.24 -0.27%
market signals remain generally negative moving forward.
INDUSTRIAL 6,559.79 -82.98 -1.25%
While conventional market logic presupposes a technical HOLDING FIRMS 3,127.19 10.68 0.34%
rebound following extended declines, the underlying measures PROPERTY 1,392.89 -27.30 -1.92%
of the market detailed below decreases the probability of SERVICES 1,386.13 -24.71 -1.72%
such rebound, or if it does occur, it does so with the MINING & OIL 13,748.82 184.53 1.36%
characteristics of a “dead cat.” It will take more than just As of 1210H End of Day
an immediate reversal of sentiment to overturn the market's ASIAN MARKETS LATEST UPDATE
COUNTRY INDEX LAST % CHANGE
technical bias – though it will be a welcome initial hint. ASIAN REGION MSCI APEX 50 835.38 -1.12%
JAPAN TOPIX 934.22 -1.34%
The biggest drain on the market has been the developing JAPAN NIKKEI 225 10,452.70 -1.19%
Middle East crisis. To a good number of observers, this is CHINA HANGSENG 22,601.00 -1.34%
reminiscent of an oil crisis that gripped global economies in CHINA SHANGHAI 2,878.60 0.56%
the early 1970's. While there is no guarantee this will be TAIWAN TAIEX 8,541.64 0.15%
SOUTH KOREA KOSPI 1,949.88 -0.60%
the case this time around, there is likewise no assurance it
AUSTRALIA S&P/ASX 200 4,809.30 -0.76%
won't be. Hopes are high of course that Libyan leader AUSTRALIA ALLORINDARIES 4,901.10 -0.70%
Qaddafi will take the same route Mubarak took in Egypt a week NEW ZEALAND NZ50 3,368.35 -0.11%
or two earlier. PAKISTAN KARACHI 100 11,539.30 0.14%
SRI LANKA Sri Lanka Colombo 7,583.42 0.46%
On a lighter note, the domestic fundamentals have remained THAILAND SET 977.22 -1.38%
consistently strong. However, we have yet to incorporate the INDONESIA JKSE 3,439.13 -1.01%
INDIA BSESN 17,632.40 -3.00%
impact of the Middle East crisis into the initial full year
SINGAPORE Straits Times 2,973.08 -0.96%
projections. This could be one of the factors that restrains MALAYSIA KLSE 1,489.87 -1.41%
investors from loading up on equities. We have yet to see if VIETNAM HO CHI MINH 461.29 -1.99%
recent events will make revisions on targeted numbers BANGLADESH DSE General Index 6,018.48 -2.51%
imperative. Even without the Middle East problems, there MONGOLIA MSE Top 20 32,575.80 1.19%
were already doubts cast on the GDP projection of between LAOS Laos Composite 1,414.39 1.97%
As of 2128H 2/24/11
7.0% and 8.0% this year. The build-up of inflationary
pressures likewise puts some questions on the reasonableness
of the official inflation range 3.5% to 5.5%. As a consequence, interest rates may have to rise sooner than
expected.

THE PSE Index managed to stave off a second successive attempt to break under the 3,700-line. Wednesday's low
reached 3,705.58 and yesterday closed just 0.14 points above the 3,730.70 intra-day low. The market's retreat
brings the index -11.2% on a year-to-date. It has now drawn three successive lower peaks at 4,148.16 (January
17), 3,990.49 (January 27) and 3,866.38 (February 17.) Off the all-time peak of 4,397.30 last November 4, 2010,
the losses amount to -15.16%! Critical points are now drawn at 3,990-95 (38.2% upside recovery line) and at
3,640 (a -20% retreat off the November peak.) This translates to an upside of 7.0% versus a downside of -2.4
percent. This trade-off will seem fair enough to merit a MEDIUM- to LONG-TERM BUY proposition. However,
commonly tracked technical indicators suggests otherwise, favoring a further slide. As we shall present towards
the end, these are not entirely contradictory. The “secret” lies on the timeline.

The most recent rise of the STO(10,6,6) above the trigger line,
simultaneous with its emergence from oversold territory,
translated to a “mere” 2.0% rise in the index. By the end of
yesterday's session, STO has dropped for three days and has, in
fact, marginally moved under the trigger line, a SELL signal.
The weekly chart moves deeper into oversold territory even as
the slope remains steep. Meanwhile, the monthly STO chart shows
its first move under the 80 overbought line in 16-weeks. None
of these suggests, or at least lends encouragement for a
sustained near-term rise.

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 REVIEW & OUTLOOK_ TD039-40_February 24-25, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,730.84 -26.20 -0.68% 7,235.70 2,968.27 40 99 28

MACD (12,26,9) presents much the same picture. The

MACD is substantially below the zero-line with the
MACD line poised to break under the signal line,
supplanting the SELL signal posited earlier by STO.
On a weekly basis, the picture is no different. The
negative spread continues to widen and there is yet no
signs of a possible dissipation of the negative
pressure. The same can be said using the monthly
perspective.

Furthermore, none of the volume/value indicators show

a decisive shift to accumulation.

THE main index has fallen below all period Weighted Moving Averages (WMA) as show above an it continues to draw a
negative trend. One silver lining amid all these pessimistic picture is that value turn-over has consistently
thinned over the recent sessions. This could be an initial sign that the selling pressure is drying up.

Given all these evidences, we are inclined to stay at the sidelines and wait for more convincing signals to
support a buying recommendation. At the moment, all these taken together increases the likelihood that the index
may test the -20% mark at 3,640. Our general stance would be to SELL on rallies.

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