ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week XX_May 16 to 20_TD 094-098 s 2011
1 of 3

OUTLOOK FOR THE WEEK

CATEGORY M EASURE VALUE PREVIOUS W EEK CHANGE% END-DEC2010 CHANGE%
ACTIVITY [YTD
NET VOLUM E 2,468,395,770 2,283,584,671 8.09% 1,637,867,112 50.71%
DAILY AVERAGES]
NET VALUE 4,510,720,052.26 4,480,663,167.93 0.67% 4,603,800,556.27 -2.02%
ISSUES TRADED 175 173 1.16% N/A N/A
TRADES 14,982 14,948 0.23% N/A N/A
FOREIGN (BUY) 2,233,737,058.87 2,262,852,080.01 -1.29% 1,972,980,083.85 13.22%
FOREIGN (SELL) 2,010,930,072.30 2,007,526,848.00 0.17% 1,752,691,290.38 14.73%
FOREIGN (NET) 222,806,986.57 255,325,232.01 -12.74% 220,288,793.48 1.14%
INDICATORS AD Line -523.00 -590.00 -11.36% -508.00 2.95%
%K STO(14,3) 81.79 43.75 86.96% 95.12 -14.01%
%D (STO(14,3,3) 79.65 63.83 24.79% 72.13 10.42%
RSI(14) 57.46 51.85 10.83% 56.61 1.50%
EM A(10) 4,291.69 4,273.42 0.43% 4,149.40 3.43%
EM A(50) 4,157.93 4,126.36 0.77% 4,119.42 0.93%
EM A(150) 4,001.28 3,980.59 0.52% 3,839.39 4.22%
PHILIPPINE MARKET STATS
INDEX LAST WEEK% YTD% The Market in Numbers: Trading Stats and Technical Measures
PSEI 4,292.11 1.73 2.17
ALL
FIN
IND
3,002.72
943.62
7,144.50
1.47
-0.45
1.59
-0.12
-1.86
-1.05
A CTIVITY continued to pick-up as shown by the general
improvement across almost all daily averages.
supports the 1.73% week-on-week gains, which although
This

HDG 3,600.33 3.02 6.24 narrower than the week's highest point, reverses the previous
PRO 1,578.54 1.12 -0.25 week's retreat and sustains the local equity benchmark's year-
SVC 1,555.75 2.64 -2.18 to-date advance above 2.0%.
M&O 17,850.15 3.03 27.98
WORLD MARKETS
Average daily volume turnover jumped 8% to 2.468 million shares,
INDEX LAST WEEK% YTD%
driven mostly by increased interest in the mining sector. Trading
DOW 12,595.75 -0.34 8.80
S&P 1,337.77 -0.18
focused primarily on Lepanto Consolidated Mining Corporation (both “A”
6.37
NASDAQ 2,828.47 0.03 and “B” shares) [pse: LC, php0.81, unch; and LCB, php0.82, -5.7%], and
6.62
FTSE 100 5,925.87 -0.85 Manila Mining Corporation [pse: MA, php0.048, +4.3% and MAB,
0.44
DAX 7,403.31 -1.19 php0.048, +2.1%.]. Sector blue-chip Philex Mining Corporation [pse: PX,
7.07
CAC 40 4,018.85 -0.97 php19.76, +9.4%] served as the fulcrum of the fates of the
5.63
MSCI APEX 50 908.16 0.19 aforementioned issues.
4.85 In the week prior to last, PX , with the
TOPIX 839.94 -1.93 agreement of First Metro Investment Corporation [pse: FMIC] and the
-6.55
NIKKEI 225 9,648.77 -2.13 Bank of the Philippine Islands [pse: BPI], acquired a 5% stake in LC or a
-5.67
HANGSENG 23,276.30 0.51 total of 2,161,240,810 shares at php0.66 a piece, effectively acquiring a
1.05
SHANGHAI 2,871.03 0.25 indirect stake in the latter's 40% interest in the Far East Gold Project, In
2.24
TAIEX 9,006.61 0.33 0.38
a deal with MA on the other hand, the two parties reached an agreement
KOSPI 2,120.08 -1.27 3.37
for the exploration and joint development of the Kalayaan Project in
S&P/ASX 200 4,711.40 -0.67 -0.71
Surigao del Norte, covered by EP No. XIII-014B held by Kalayaan Copper
ALL ORDINARIES 4,787.30 -0.60 -1.23
Gold Resources, Inc, a wholly-owned subsidiary of MA. This was effected
NZ50 3,535.79 0.84 6.85
through the purchase by PX of 125k Kalayaan stock, equivalent to a 5%
SET 1,084.96 3.25 5.05
stake. This will effectively expand to 60% as PX solely funds all pre-
JKCI 3,832.02 0.88 3.47
development expenses, including the final feasibility study. The
BSESN 18,531.30 0.07 -9.64
Straits Times 3,163.68 2.07
eventual development
-0.83
KLCI 1,540.74 1.67 of the area will be a
1.44
10.%
15.0%
20.%
25.0%
30.%
35.0%
40.%
45.0%
50.%
.0%
5.0%

HO CHI MINH 479.67 1.47 joint effort between the

-1.03
two. Note that Lepanto FINANCIAL
owns 38.84% of combined MA and MAB outstanding stock. Inclusive of
those held by Lepanto Investment and Development Corporation, the INDUSTRIAL
proportion rises to 45.66%. These numbers are based on the Top 100 list
as of the end of March 31, 2011. HOLDING FIRM

The shift towards the mining sector is also evident in the value turnover PROPERTY
matrix showing May contribution rising to 15.82% from 10.26% in April
SERVICE
and a mere 7.67% through the first quarter. Except for the addition of the
Industrials, which continue to own the biggest slice of the aggregate value MINING & OIL
pie, all other sectors saw their respective pieces narrow. In this context, it
is not surprising that the Mining and Oil sector is currently trading at
historic high levels and is the market's biggest gainer on the week JAN FEB MAR APRIL MAY

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.
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week XX_May 16 to 20_TD 094-098 s 2011
2 of 3

(+3.03%) as well as on the year (+27.98%.) In comparison, the Main Index is up 2.17% year-to-date. Financial, Industrial
and Service groups are yet to better their respective end-2010 index marks.

The number of issues traded per session expanded by two

units to 175 accompanied by a quarter percentage point
increase in average daily turnover or trades. This in 25,000,000,00 0.00

indicative of a growing participation, and thus interest in 20,000,000 ,000.00

15,000 ,000,000. 00

equities. Foreign buying eased while opposite trades rose 10,000,000,00 0.00

marginally. These funds are the most sensitive to 5,000,000 ,000.00

developments overseas as well as the continuing strength -

(5,00 0,000,000. 00)

of the local currency versus the global denomination – the (10,000,000,000 .00)

US dollar. Having said that, however, their net position

year-to-date, is at php20.721 billion, with the turn-around
from net selling observed and marked at the first week of
April trades.

The Advance-Decline Line (ADL) year-to-date shows ADL 2011

marked improvements since it hit bottom last March 17, 200

with a value of -749, coincident to an index reading of 100

3,817.38. Its most recent top was reached on the first

7-M
4-M
1-M
8-M

2-M
9-M
session of May at -405 with the index at 4,326.76.
0

4-A
1-A
8-A
5-A
n
n
n
n
n

p
1-Ja
7-Ja
4-Ja
1-Ja

b
b
b

p
p
p
3-Ja

e
e
e
e
7-F
4-F
1-F
8-F
a
a
a
a

a
a
y
y
r
r
r
r
r
r
r
r
0
1
2
3

1
2
1
2
2

1
2
2
However, the erratic movements do not lend itself to a -100

defined bias, but manages to posit a sideways potential -200

and further suggests that the worst of the market's drop is
already a thing of the past. -300

-400

Isolating last week's action, the ADL wrote legitimacy on

the 1.73% advance, reversing the previous week's -136 -500

spread as it posted +67. This resulted from a 48% -600

increase in the aggregate advancers coupled with a -21%

narrowing in their declining counterparts. So-called
-700

“fence-sitters” hardly moved. -800

While the daily chart of the PSEI invites some worry over a
possible pull-back with the advance not fully-supported by
the underlying indicators (read: posting divergent
movements as well as drawing potential bearish
penetrations of important lines), the weekly and monthly
pictures, thus the medium- and long-term prospects, are
promising.

The index has been trading above ALL exponential moving

averages (EMAs 10pd, 50pd and 150pd) over the last 7
weeks or roughly 1.5 months. Over that period, it traded
within a relatively wide 215 points band, with an slight
upward bias, although narrowing further to 170 points in
the last three weeks. This could be a sign that the market
is shifting to a cruise as it waits for more hints and
inspiration to further trade up equities. Such push we
have been anticipating to come from the earnings side.

The four (4) bottom charts for RSI(14), STO(14,3,3),

MACD(12,26,9) and AccDist Line offer mixed readings.
However, notice that the positive biases are more
pronounced.

Thus, technically, we can say that the market is building

up positive momentum, which creates, at the least trading
opportunities this week. However, the presence of slightly
negatively biased indicators keeps us on our toes on the

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.
ACCORD CAPITAL EQUITIES CORPORATION
GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week XX_May 16 to 20_TD 094-098 s 2011
3 of 3

prospects of intermittent pull-backs. Unsatisfactory developments in overseas conditions may serve as the stimulus to
move stocks lower, providing healthy corrections. Investors are well-advised to be cognizant of crucial pull-back lines for a
reaction low from ensuing rallies as potential entry points. At this instance, these important pull-back lines lie at the 4,270-
4,280 and 4,200 and the major support mark at 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.