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ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
END OF WEEK_ TD040_February 25, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged

Official Daily trading statistics from the Exhange website are unavailable at the moment.

WEEKENDER: REVIEW & ANALYSIS PHILIPPINE MARKET, DAILY STATS


SECTOR INDEX Pts Change % CHANGE
The session ended flat, registering only a 6.20 points ALL
FINANCIAL
rise off the previous session's close. Value turnover
INDUSTRIAL
increased to php3.645 billion, but remains under the HOLDING FIR MS
year-to-date average. Decliners continues to dominate PROPERTY
advancers, routing the latter, 74-54. Unchanged counters SERVICES
fell to 37. MINING & OI L
As of 1210H End of Day
There were very few developments on the domestic front ASIAN MARKETS LATEST UPDATE
COUNTRY INDEX LAST % CHANGE
to borrow hints from and thus investors focused on the ASIAN REGIO N MSCI APEX 50 848.57 1.50%
unfolding drama in the Middle East, particularly Libyan JAPAN TOPIX 935.84 0.17%
leader Muammar Qaddafi's hard-line stance putting an JAPAN NIKKEI 225 10,475.70 0.22%
obstacle to an early resolution to the crisis. CHINA HANGSENG 22,866.30 1.17%
CHINA SHANGHAI 2,885.60 0.24%
Contributing to the rebound, other than technical TAIWAN TAIEX 8,593.66 0.61%
SOUTH KOREA KOSPI 1,952.07 0.11%
considerations, were reports that Qaddafi's close allies
AUSTRALIA S&P/ASX 200 4,840.10 0.64%
have abandoned him. This may, ceteris paribus, quicken AUSTRALIA ALLORINDARIES 4,924.90 0.49%
the solution to the crisis. Nevertheless, pessimism NEW ZEALAND NZ50 3,357.82 -0.31%
still ruled the day, capping the rally at just 11.04 PAKISTAN KARACHI 100 11,539.30 0.14%
points. SRI LANKA Sri Lanka Colombo 7,583.42 0.46%
THAILAND SET 979.76 0.26%
Business confidence sustained its optimism as shown by INDONESIA JKSE 3,451.99 0.37%
INDIA BSESN 17,777.30 0.82%
the results of the BSP's sentiment survey. Q1 2011 SINGAPORE Straits Times 3,003.22 1.01%
rating came in at 47.5%, lower than the previous MALAYSIA KLSE 1,492.97 0.21%
quarter's 50.6% as rising commodity prices, poor weather VIETNAM HO CHI MINH 467.31 1.31%
conditions in some parts of the country and the BANGLADESH DSE General Index 5,800.94 -3.61%
traditional post-Christmas slowdown in economic activity MONGOLIA MSE Top 20 32,575.80 0.00%
were factored in. Nevertheless, the Q2 2011 confidence LAOS Laos Composite 1,414.39 0.00%
As of 1159H 2/25/11
outlook recorded a historic high at 59.4% believing the
growth momentum of last year will spill-over to the
current year. We must note however, that the survey was conducted prior to the eruption of the Middle East
crisis which has drastically impacted on world oil and fuel prices. It will interesting to find out if, and how,
this alters the reported figures.

Yet, even without this ME element in the equation, inflation and interest rates are generally seen to rise moving
forward. Tweaks in the policy rates are anticipated to become an imperative in the second semester of the year.
Again, a protracted unrest in the oil-producing and exporting region may pull the interest rate-expectations
forward. The next BSP meeting is still four weeks away, on March 24, 2011.

PRELIMINARY OUTLOOK FOR WEEK 9_FEBRUARY 28 to MARCH 4

INVESTORS will be closely tracking developments in the Middle East over the weekend. The possible impact of a
protracted crisis in the region is manifold and all may adversely impact on government's stated economic targets.
The immediate effect is already being felt with oil and commodity prices running north, threatening to go over
the US$100 per barrel mark. As of 1025H Manila, the price per barrel has reached US$96.96. This has already
“pushed” local oil companies to jack up pump prices of fuel. Prices of basic commodities are going to rise as
well as input and transportation costs adjust to the changes.

The upheaval has likewise caused the displacement of our overseas workers as well as forcing government to
implement a travel ban to Libya, Bahrain and Yemen. (POEA Advisory No. 6 s 2011 dated February 22, 2011.) Based
on POEA's Compendium on OFWs (2003 to 2009) 669,042 Filipino workers were deployed in the Middle East with
Bahrain, Libya and Yemen hosting nearly 27k or 4.0% of the total. The three countries combined for US$158.338
million or 0.84% of the US$18.763 billion remittance for 2010. The entire Middle East accounted for US$2.665

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)
END OF WEEK_ TD040_February 25, 2011
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged

Official Daily trading statistics from the Exhange website are unavailable at the moment.

billion or 14% of the aggregate. This will cause a dent on the remittance figures for this year which is
targeted to grow 8.0 percent.

Its third impact will be on unemployment which the latest figure show to have marginally slipped to 7.3% from
7.5%. Unless the displaced workers and the applicants for jobs in the countries covered by the ban are able to
find jobs elsewhere, funding for social services will proportionately rise, not to mention the social discontent
borne by idle labor. On this end, the leadership will once more be hard-pressed to keep the budget deficit,
programmed for 2011 at php290 billion, in check.

Over-all these will dampen domestic demand, ergo making firms think twice on revving up their capacities and
increasing output. The net result will be slower economic activity. Government's 7.0-8.0% GDP growth targets is
threatened.

Moving away from the Middle East, the China inflation concern remains on the table of considerations. It is not
only actually China, but practically the whole population of emerging economies now reeling from the impact of
aggressive investment flows over the last two years. Already, a good number have adopted a stricter monetary
stance and heightened fiscal discipline to protect the gains made.

Thus, we are likely to see local equity investors hesitating to make early bets on listed firms forward earnings,
at least until some clarity emerges on the resolution of the conflict, as well as a pre-emption of similarly-
inspired uprisings in neighboring and peripheral countries.

Initially, we keep support pegged at the 3,700 line with major trend reversal confirmation at the 3,640 mark. A
break below such line cancels all bets. Immediate resistance at 3,770-3,800 range.

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

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