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 13-14, 2010
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
4,115.38 -20.37 -0.49% 660 4,565.81 49 77 37

Daily Wrap: SECTOR INDEX Pts Change % CHANGE

ALL 2,865.75 -14.24 -0.49%
ASIAN markets opened the week on a sluggish pace, dipping FINANCIAL 946.34 -11.18 -1.68%
into negative territory in early trades before picking up INDUSTRIAL 6,901.69 -40.77 -0.59%
through midday to inch into positive as the Philippine equity HOLDING FIRMS 3,383.47 -29.13 -0.85%
market closed. PROPERTY 1,540.70 2.47 0.16%
SERVICES 1,515.02 2.55 0.17%
THE PSE Index gave up another 20.37 points [-0.49%], settling MINING & OIL 12,573.14 -153.37 -1.21%
at 4,115.38, extending the drop to a third session. It was the TRADES 11,065
turn of Property and Service counters to “decouple” from BLOCK SALES
FOREIGN TRADES
the main market's trend. The Broader measure mirrored the In Php Millions As of 1211H 12/13/10
composite's -0.49% retreat. ASIAN MARKETS
COUNTRY INDEX LAST % CHANGE
Market breadth was negative, 49-77 while value turnover
JAPAN TOPIX 890.05 0.21%
thinned to php4.566 billion with only 660 million shares JAPAN NIKKEI 225 10,226.64 0.14%
changing hands. CHINA HANGSENG 23,322.94 0.69%
CHINA SHANGHAI 2,872.80 1.12%
The top 10 actively traded counters accounted for 38% of the TAIWAN TAIEX 8,757.10 0.44%
value turnover. Seven on this list saw prices slip led by AP SOUTH KOREA KOSPI 1,987.85 0.09%
[php31.25, -3.4%] and MBT [php68.05, -3.48%]. Only ICT THAILAND SET 1,040.45 0.44%
[php42.95, +2.38%], RLC [php17.04, +1.67%] and AGI [php12.00, INDONESIA JKSE 3,714.48 -0.89%
+0.17%] advanced. INDIA BSESN 19,508.89 1.39%
SINGAPORE Straits Times 3,186.36 0.03%
Backdrop: MALAYSIA KLSE 1,508.48 0.08%
VIETNAM HO CHI MINH 489.82 3.54%
OVERSEAS: US stocks climbed 28.23 points last week, a
rather tepid reaction to largely positive developments both in the domestic and global economies. The country's trade gap
narrowed on the back of record purchases from Mexico and China and a rise in consumer confidence to a six-month high. Earlier
in the week, President Barack Obama signed in on a Republican-initiative of extending Bush-era tax cuts to include the wealthiest
Americans. The President, in exchange, put in an extension of the unemployment insurance as well as a $120B worth of cuts in
payroll taxes. The matter is now at the hands of the legislators with Democrats vowing to oppose the measure.
European markets nudged higher as debt-concerns took a backseat. Investors wait for the results of a meeting of European Union
leaders this week. On top of the agenda is the question that has divided the region – that of expanding the eurozone's rescue
package .
China becomes the focal point this week with the markets expecting an upward tweak in interest rates following a 5.1% rise in
consumer prices. Liquidity in the world's second largest economy expanded by nearly 20% year-on-year to November.. It's trade
surplus likewise broadened by $22 billion, and in addition to the RMB564 billion outstanding local currency loans. the financial
market is awash with cash. This despite the imposition of curbs in energy consumption, a crackdown on real-estate speculation,
an interest rate hike in October, and over the weekend, a 50 basis points increase in banks' reserve requirements. Over the
weekend, it refused to raise interest rates, seeing such move as a probable invitation to speculative capital in-flow. An interest rate
hike puts appreciative pressure on the currency, which China has been “reining” in via a de-facto control (limiting its range), to
boost its export revenue. Nevertheless, the Central Economic planners have hinted at a more aggressive tightening policy next
year. This could unsettle global recoveries, which at this point, has found its strongest base among emerging economies,
particularly China. In fact, the latest narrowing of the US trade gap is attributed mostly to a record demand from China – and
Mexico.

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 _December 13-14, 2010
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
4,115.38 -20.37 -0.49% 660 4,565.81 49 77 37

A Look Ahead:

The market's technical condition further deteriorated along the

lines of what we presented in the weekly outlook. The PSEI,
while hanging above the 4,100-line landed an inch above the
50-pd EMA, a near-term support. And although the major
150pdEMA sustains its positive bias, it has lost some slope and a
further retreat may pull the line further, clouding the forward
prospects with a possible shift to a side-ways movement.
A fall below the 4,100 mark may precipitate a more aggressive
near-term selling which could push a the index to test the 3,970-
support.
OBV (bottom chart) shows a break under the previous trough, a
sign that selling pressure has intensified over the three session
drop compared to the almost even accumulation over the
preceding four trading sessions.
STO has likewise given the twin sell signal of (1) breaking below
the trigger line and (2) going under the overbought 80-line.
The MACD shows the slowing of positive pressure, pushing the
line to a possible cross-down of the signal line – yet another technical sell signal.
Given these technical developments, and with China's inflation lending uncertainty over sustaining the pace of global recoveries, we
take a cautious, but still positive, stance moving forward. Trades may be held back to see if the 4,100 line will provide encouragement
for bargain hunters. Immediate support at 4,050 with resistance scaled back to 4,170.

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