ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY WRAP & OUTLOOK_ TD043-44_March 2-3, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,773.71 -10.52 -0.28% 3,444.17 3,850.92 42 80 41

TRADING HIGHLIGHTS PHILIPPINE MARKET, DAILY STATS

SHARE PRICES survived an early 30-points drop SECTOR INDEX Pts Change % CHANGE
before a slight recovery kept the measure hugging ALL 2,853.66 -13.40 -0.47%
the 3,770 line past the half-way mark of the FINANCIAL 842.21 -6.86 -0.81%
session. A marginal pick-up towards the closing INDUSTRIAL 6,694.40 20.10 0.30%
bell further narrowed losses to -10.52 points or HOLDING FIRMS 3,185.19 -42.79 -1.33%
-0.28% at 3,773.71. PROPERTY 1,404.90 -5.22 -0.37%
SERVICES 1,374.61 10.90 0.80%
Value turnover slowed a bit to php3.85 billion with MINING & OIL 13,687.73 -0.38 0.00%
3.444 billion shares changing hands. The extent of As of 1210H End of Day
ASIAN MARKETS LATEST UPDATE
the drop however is magnified by the wide negative
COUNTRY INDEX LAST % CHANGE
gap between advancers and decliners. There is yet
ASIAN REGION MSCI APEX 50 853.79 -1.13%
no suggestion from the ADL the bear will be reined
JAPAN TOPIX 950.44 -1.38%
in over the near term. JAPAN NIKKEI 225 10,579.00 -1.63%
CHINA HANGSENG 23,002.90 -1.68%
Last night, US stocks dropped below the 12,100- CHINA SHANGHAI 2,897.23 -0.74%
line, Treasuries held steady and oil continued to TAIWAN TAIEX 8,675.93 -0.59%
rise. Pessimism in equities began in Europe, which SOUTH KOREA KOSPI 1,928.81 -0.54%
defied trends in Asia, with the FTSE100, DAX50 and AUSTRALIA S&P/ASX 200 4,787.90 -0.80%
CAC40 all registering drops of at least 40-points. AUSTRALIA ALLORINDARIES 4,885.10 -0.72%
NEW ZEALAND NZ50 3,381.04 -0.10%
The Dow shed -168.32 points to 12,068.02, snapping PAKISTAN KARACHI 100 11,608.40 0.00%
a two-session run and erasing all gains made in SRI LANKA Sri Lanka Colombo 7,701.19 0.00%
that span. Pending home sales fell more-than- THAILAND SET 989.23 -0.53%
anticipated to -2.8%, albeit improving on the prior INDONESIA JKSE 3,447.42 -1.00%
month's -3.2% pace. The sustained weakness and INDIA BSESN 18,446.50 3.50%
quite slow recovery in this segment of the housing SINGAPORE Straits Times 3,042.97 -0.80%
market is one of the major drags to the economic MALAYSIA KLSE 1,496.07 -0.41%
rebound. Americans spend a big chunk of their VIETNAM HO CHI MINH 457.99 -1.74%
incomes on home purchases. BANGLADESH DSE General Index 5,601.60 0.00%
MONGOLIA MSE Top 20 30,892.80 0.00%
LAOS Laos Composite 1,431.17 0.00%
What really dragged sentiment however, was oil
www.bloomberg.com As of 1205H MLA 3/2/11
prices breaching the US$100-mark. Federal Reserve
Chairman Ben Bernanke however downplayed its impact on the US economy, that gasoline prices which
has risen to $3.29 per gallon, “is a lot of problem for a lot of people, but doesn't yet pose a
threat to either recovery or deflation.” The latter was the fulcrum on which the second round of
quantitative easing, which drew a lot of opposition, revolved. It was aimed at reducing
unemployment – a result yet to be reached.

The Middle East crisis remain the standard response to explain the market's volatility – negative
for the most part. It has been keeping the lid on what many believe should be a sustained run.
Fundamentals have stayed strong, the recoveries decent, gradual and stable in economies worst-hit by
the recession, even as the battle against inflation has threatened the growth pace in emerging
economies.

The Philippines thus far, has been spared. Except of course for the rapid rise in the pump prices
of fuel. Despite having held back long-delayed increases in transportation fares, February
inflation, due to be reported this Friday, is seen to have risen. However, in a bloomberg.com

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 WRAP & OUTLOOK_ TD043-44_March 2-3, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
3,773.71 -10.52 -0.28% 3,444.17 3,850.92 42 80 41

interview, BSP Governor Amando Tetangco admits this has narrowed the scope to keeping domestic rates
low – a first hint at a sooner-than-anticipated tweak. Overnight rates have been kept at the 4.0%-
6.0% borrowing and lending, respectively, since 2009. The next policy and rate setting meeting is
scheduled in the last week of March.

INITIAL DISCLOSURES: as of 1210H

N/A website inaccessible.

PRELIMINARY OUTLOOK FOR TD044_MARCH 3, 2011

INVESTORS may begin to factor in an expected higher inflation for February in pricing equities. The
report is due on Friday. January numbers jumped to 3.5% year-on-year, half a percentage point
faster than the prior month. Of course, the January report does not yet reflect the price pressures
lent by the political upheavals that spread across the oil-rich Middle East that began in the North
African nation of Egypt.

In the meantime, the market will continue to track western markets' movements with still the Middle
East crisis and how it affects their respective economic recoveries as the focal issue. Wednesday
night, the US will report on its non-farm employment change with a consensus building up for a
reduced pace of 178k from 187k the previous month.

On a somewhat positive light, the index has been able to hold the 3,700-3,800 range through these
critical times. That lends confidence on our part that the 3,700-3,730 support band is strong.
Alternatively, the wide losses sustained by the market on a year-to-date, and the still negative
sentiment, tempts investors to take profits, capping rallies. Resistance is pegged at the 3,770-
3,800 range.

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