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 & OUTLOOK_November 18, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4,069.31 -70.01 -1.69% 1.701B Php4.648b 39 94 39

DAILY WRAP:
INVESTORS continue to be uninspired by positive earnings and
sustained sound fundamentals of the broad economy, opting to take
their cue from the Dow's 178 points slide overnight. The week-old
recomposed PSE index thus erased all gains recorded in Monday's
rebound, marking such as a mere technical bounce, as it settled
-70.01 points (-1.69%) lower at 4,069.31.

An aggregate of 1.702 billion shares worth php5.1 billion changed

hands. Net of block sales, the totals dips slightly to 1.681 billion and
php4.648 billion, respectively. Although regular market volume rose
from Monday's total, value turn-over slowed, indicating a possible
dissipation of the sell pressure.

All sectors sustained losses, led by Industrials' -2.16%. Financial

counters gave up the least, -1.08%. Of the Top 10 Active issues,
which accounted for a combined php2.412 billion or nearly half of
the day's aggregate value turnover, only one, Aboitiz Power
Corporation [pse: AP, php30.60, +0.33%] gained. Among the whole
universe of traded issues for the day, decliners outran advancers
more than 2-to-1.

Investors fled to safety following the re-emergence of both China

and Europe on the global stage of concerns surrounding their
respective economies.

Europe, which at mid-year hugged center stage, as Greece grappled

with its huge debt burden, now trains its sights on Ireland, the
second “I” in the PIIGS [Portugal, Italy, IRELAND, Greece and Spain]
economies whose debt-to-GDP ratio has widened beyond the
Eurozone's limit of 3%.

Meanwhile, China, which, to a large extent, has both been the boon
and bane of global recovery, joins Ireland as the major drag to
sentiments. China inflation was at 4.4% last October and while this
seem like a low figure, it is significantly higher than its 16-year
average of 4.25%. The country has been growing at a 9.6% clip and
the demand has helped its export-oriented neighbors cushion the
slack created by the weaknesses in the Western markets. Earlier,
Chinese monetary authorities were believed to be contemplating a
hike in interest rates, currently at 5.56% to temper inflationary
pressures.

Asian markets were generally lower today with a good number of

Southeast Asian bourses plus India, closed for a holiday.

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 & OUTLOOK_November 18, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4,069.31 -70.01 -1.69% 1.701B Php4.648b 39 94 39

OUTLOOK:

AT this point, we can lower the bar of expectations for an earnings induced rally considering that the amount of positive earnings data over
the last two weeks have failed to provide a good spin to trading. On a month-to-date, the main index has already lost -4.7% contrary to our
earlier expectations.

Contrasting views are proferred by the charts when considered

over different time frames. It is only the daily charts that point to
the slide as having dragged the market into oversold territory
raising anticipations of a near-term upswing. Monday's gains
would've been a perfect springboard to restore optimism but
events extraneous to the market interfered and kept sentiments
down. And it may well continue to do so.

Weekly and monthly STO (10,3) suggests a further downward

pressure. Weekly MACD (bottom chart) draws an imminent dead
cross which could be actualized before the current week is over,
ceteris paribus. This posits a SELL signal. MFI remains elevated at
90. - 10 points above normative overbought levels. Just
yesterday, (Wednesday) STO for the same time-frame fell under
the 80-line, an initial warning signal that requires a second
downward penetration following a reaction rise above the same
line. The index itself, sustains to a second day its close below the
short-term 10pd EMA. All considered from this perspective, the
downside risks do appear larger than the upside potential
presented by the daily charts.

Daily STO (10,3) has somewhat leveled off over the last two days, marginally rising to 12.63 even as the index fell under its prior low as STO
hit 11.56. Yet while this is so, MACD fails to signal an easing of the sell pressure while MFI leaves some room for a downside before
confirming the STO suggestion of the market's oversold condition.

The market will try to find inspiration from today's meeting of the Monetary Board as it decides on policy rates. The general expectation is
for the Board to leave rates untouched. Only a “surprise” move either way may have a significant impact on trading activity.

The Dow will provide additional fodder. At the time of this report, the widely-tracked measure has gained some ground, moving into
positive territory, albeit by only 11 points following a poor start. Earlier, European markets, at the heart of one of the current major
concerns, rose marginally, lending some hope and positive cues for US investors.

PSE Index support level remains at 3,970 with an initial upside target of 4,100.

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