ACCORD CAPITAL EQUITIES CORPORATION

PSEI Pts Change % Change Volume

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (+632)687-5071 (trunk)

D A I LY W R A P & O U T L O O K _ T D 117-118 _June 16-17, 2011

Value Advancers Decliners Unchanged

4,173.08

-28.30

-0.67 %

2,022.76

5,175.20

60

65

46

MARKET WRAP & HIGHLIGHTS

SECTOR ALL FINANCIAL INDUSTRIAL HOLDING FIRMS PROPERTY SERVICES MINING & OIL

PHILIPPINE MARKET, DAILY STATS INDEX Pts Change % CHANGE

HE resurgence of concerns over global recoveries sent local equities rolling back to below the 4,200-line and the two-and-half month consolidation band. US stocks reclaimed all gains Tuesday, European debt concerns returned to the forefront even as German and French leaders meet to iron out the kinks in the second rescue package for Greece while Ireland gets back into the negative news cycle. Against this backdrop, Asian markets resumed their slump.
The PSE Index, a composite of market cap heavy and highly liquid counters, gave up -28.30 points (-0.67%) to 4,173.08, resting above a crucial support line. Ironically, the interest rate-sensitive Property sector advanced 18.29 points (+1.25%) to 1,485.19. The Philippine Monetary Board meets later this afternoon to decide whether to tweak rates further in light of sustained rise in consumer prices and similar tightening across emerging economies and, on the other hand, anticipated slow GDP growth through the Second Quarter. Asian stocks fell for a second day, resuming an almost four-week decline, broken only by recent economic data from China which showed the world's second largest economy retains its growth trajectory. An imminent default by Greece, after policymakers still fail to agree on the role bondholders will take in the proposed second rescue, has heightened uncertainties and risk aversion. Bond spreads widened. The debt burden has taken on a political color, with a growing number of opposition to a government's proposal to curb spending among other austerity measures.

2,497.98 934.08 7,027.01 3,434.08 1,485.19 1,490.00 18,047.60

-0.37 -2.46 -54.32 -9.23 18.29 -35.88 21.07

-0.01% -0.26% -0.77% -0.27% 1.25% -2.35% 0.12%

The BSP is expected reaffirmed its commitment to growth but is nonetheless seen to push interest rates higher by 25 basis points to head off inflation. Consumer prices had risen by 4.5% in the last two months, mostly driven by supply-side pressures. Discounting seasonal upticks, consumption has been rather slow and the tweak may further discourage people from dipping into their pockets beyond the essentials. Despite having pulled back to less than $100 per barrel since last week, WTI crude remains elevated versus year-ago prices. Brent crude straddles the $110-115 band. Increases in utility rates in the energy- consumption heavy month will most likely drive core numbers higher. Value turnover crossed the php5.0 billion mark, inclusive of around php450 million worth of block sales. Advancing stocks trailed decliners, 60-66 while 46 counters held at previous day's prices. O U T L O O K for T D_117_June 16, 2011 Entering an extended weekend, the investors may find little reason to load up on their equity portfolio, particularly in the context of the prevailing headwinds. A hike in interest rates later this afternoon may add fodder to the sell-off, or at least limit advances. On the other hand, a decision to the contrary may lend some optimism which nevertheless may not be strong enough to overturn sentiments. The market's technical conditions remains unchanged, fundamental valuations remains low both from a historical and peer perspective. These technical and fundamental bargains are opportunities waiting to be recognized by investors, who as yet are not wont to see past the dark clouds blown in by overseas winds. Immediate support level at 4,170, with a pull back to the 4,100-4,130 range not discounted. Resistance remains at the 4,200-4,220 band.

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 50 860.67 -1.82% TOPIX 819.04 -0.68% NIKKEI 225 9,469.69 -1.09% HANGSENG 22,018.00 -1.46% SHANGHAI 2,679.13 -0.97% TAIEX 8,692.65 -1.57% KOSPI 2,053.74 -1.57% S&P/ASX 200 4,504.30 -1.37% ALLORINDARIES 4,571.60 -1.38% NZ50 3,481.18 -0.72% SET 1,023.25 -0.69% JCI 3,757.24 -0.98% BSESN 18,079.80 -0.29% Straits Times 3,028.65 -0.86% KLCI 1,552.93 -0.21% HO CHI MINH 445.17 0.84% www.bloomberg.com as of 1229H 6/16/11

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