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 _ TD113-114 _June 10-13, 2011

PSEI Pts Change % Change

Volume

Value

Advancers

Decliners

Unchanged

4,219.58

-4.76

-0.11%

1,703.75

3,807.33

66

60

39

MARKET WRAP & HIGHLIGHTS

SECTOR ALL FINANCIAL INDUSTRIAL HOLDING FIRMS PROPERTY SERVICES MINING & OIL

PHILIPPINE MARKET, DAILY STATS INDEX Pts Change

OCAL share prices failed build on early gains and defied trends across the Asia Pacific region as investors remained jittery ahead of next week's Monetary Board meeting. The main Philippine equities index slipped -4.76 points to settle at 4,219.58 at the close after surging by as much as 24 points off the opening bell. Optimism marked the start of trades following a mild-to-strong rebound in overseas markets overnight, led by the Dow's +75 points finish. The benchmark S&P 500 returned 0.75%. Turnover remains weak, missing the averages badly. Total volume for the day reached only 1.703 billion as against the year-to-date average of 2.844 billion. Value flow on the other hand, slowed to php3.807 billion, nearly 15% below the average. Both averages are net of block sale values which to date accounts for 5.57% and 14.93% of the totals, respectively. Asia Pacific markets were mixed with recession hit Japan in the green. China, which continues to battle inflation with aggressive monetary tightening, have both mainland and Hong Kong stocks trading lower. The MSCI Apex 50 index fell -1.01%. Movements in the domestic market's sectors were thin and mixed as well. The broad All Shares Index, a representative measure of all listed issues, was practically flat, edging lower by a mere 0.07%. Industrial and Property counters posted marginal gains.

COUNTRY ASIAN REGION JAPAN JAPAN CHINA CHINA TAIWAN SOUTH KOREA AUSTRALIA AUSTRALIA NEW ZEALAND THAILAND INDONESIA INDIA SINGAPORE MALAYSIA VIETNAM

AS of 1210H End of Day ASIAN MARKETS LATEST UPDATE INDEX LAST % CHANGE MSCI APEX 50 876.77 -1.01% TOPIX 819.70 0.83% NIKKEI 225 9,545.24 0.82% HANGSENG 22,454.70 -0.69% SHANGHAI 2,697.99 -0.20% TAIEX 8,865.07 -1.51% KOSPI 2,061.21 -0.49% S&P/ASX 200 4,555.90 0.14% ALLORINDARIES 4,627.50 0.13% NZ50 3,493.81 0.15% SET 1,019.81 0.29% JCI 3,800.46 -0.15% BSESN 18,318.40 -0.36% Straits Times 3,090.62 -0.22% KLCI 1,557.99 0.46% HO CHI MINH 445.00 0.24% www.bloomberg.com As of 1300H 6/10/11

2,979.87 946.61 7,168.87 3,468.57 1,500.50 1,505.12 18,315.38

-2.11 -4.11 9.17 -9.44 3.11 2.54 -78.32

% CHANGE

-0.07% -0.43% 0.13% -0.27% 0.21% -0.17% -0.43%

Gainers edged decliners for the first time this week, 66 to 60. This is not sufficient to overturn the prevailing negative trend, nor at the very least, suggest a potential reversal point. Preliminary OUTLOOK for TD_114_June 13, 2011

The narrowing trading band and light volume and value turnover this week resulted from the uncertainties brought to the table by the prior week's poor economic numbers from the US, and an almost neutral domestic inflation number, which although better than what the market expected, remains closer to the upper limit of the government's official range. The just concluded week did not offer much appeasement for investors to aggressively increase their portfolio risks by adding equities into the mix. Such risks will persist in the coming week with the addition of anticipations of the Monetary Board's action on interest rates. The overnight borrowing and lending rates have been adjusted higher twice by a total of 50 basis points to 4.50% and 6.5%, respectively. Real rates of return are at or close to zero. Raising the rates again will create more positive space for fixed-income securities, but will be a bane for equities. Increasing the cost doing business by further tightening in a period of slower growth may dissuade the BSP from risking another action at this time. The meeting is slated for Thursday, yet. In the interim, markets will continue to focus on overseas developments for hints. On top of the agenda are the US economy and Europe. Major concerns are the debates on extending the US deficit ceiling or leaving the world's largest economy to a technical default. The former may roil financial markets even more. Across the Atlantic, the second aid package for Greece remains highly awaited. While there has already been an agreement in principle to tide over 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. 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 _ TD113-114 _June 10-13, 2011

PSEI Pts Change % Change

Volume

Value

Advancers

Decliners

Unchanged

4,219.58

-4.76

-0.11%

1,703.75

3,807.33

66

60

39

troubled Olympic economy, the details of the new bail-out package is still in the balance. More on the outlook for Week 24 in the weekly report this weekend.
COMPANY UPDATE: THE PHILODRILL CORPORATION [pse: OV]

SERVICE CONTRACT SC 6 SC 14

OPERATOR Block A- Octon Block B Bonita Block A Nido Block B Matinloc Block B1 North Matinloc Block D Retention Area

CONSORTIUM MEMBER

The Company (OV) operates six (6) production blocks in two (2) Service Contract areas, while being a member of a consortium over four (4) blocks in two (2) SC areas. Today, it executed a Deed of Assignment and Assumption with affiliate Vulcan Industrial & Mining Corporation [pse: VUL] for its acquisition of the latter's 7.22% and 5.0% participating interests in SC6A and SC14 (Tara Block), respectively. Both are located in Northwest Palawan.

Block C1 Galoc Block C2 West Linapacan Tara Block On-shore Mindoro

SC 52

Through the first three months of 2011, the Company posted a big jump in year-on-year revenue by php338.7M to php472M. This resulted from a 38.8% increase in the average per barrel price to $104.75 compared to $75.45 in the same quarter last year, more than making up for the 18% drop in production volume to only 675,484 barrels.

The quarter's net income of php339.19 million translates to an annualized EPS of php0.00708, putting the stock's current PE at a low 2.82x, nearly half the end-2010 level of 5.2x. This is way below the Mining & Oil sector's 24.5x PE through last week. On a TTM basis, the PE rises to a still low 4.48x. Balance sheet ratios remains healthy as shown in the KPI's above. The drop in Current Ratio resulted from an increase in liabilities to php132.9 million as the Company declared cash dividends and added provision for interim period income tax. Assets expanded by 14% to php2.644 billion as it booked the sale of its Galoc interests as well as the trade receivables and advances to related companies over the period. A subsidiary, Phoenix Gas & Oil Exploration Corporation (PGO) which it acquired four (4) years ago has not yet started commercial operations. Over the last month-and-a-half, the Company's stock price has jumped by as much as 53% to php0.023 since breaking out of the php0.013-0.015 price band. While it has pulled back over the last two weeks to close at php0.02 Friday, it has managed to hold a critical pull-back line at php0.019. The underlying technical measures of trend and momentum gives off a slight negative bias over the short term. Nevertheless, the are also indications that such a pull-back, accompanied by weak volumes, open prospects for another short-term northern push. In light of the still elevated prices for oil in the world markets, and as shown by the impact of such in the bottom-line of the company as discussed above, both technical and fundamental readings on the issue posits a SHORT- to MEDIUM-TERM BUY. Initial price target, technically, is at the php0.023 resistance. Using last year's PE range, a fundamental price range is set at php0.038 to php0.052.

KEY PERFROMANCE INDICATORS Q1 2011 Current Ratio 8.0 : 1.0 Debt-to-Equity 0.05 : 1.0 Book Value per Share 0.01403 EPS (annualized) 0.00708

End-2010 15.0 : 1.0 0.02 : 1.0 0.01279 0.00088

, 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