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 December 27, 2010_Tuesday
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
4,166.04 52.35 1.27% 1,543.20 4,228.76 86 45 34

Outlook for the Day: SECTOR INDEX Pts Change % CHANGE

ALL 2,936.64 19.86 0.68%
INVESTORS return for a three-session week to close out 2010 FINANCIAL 953.75 15.51 1.65%
with optimistic forecasts for 2011 tempered by near-term INDUSTRIAL 7,005.55 50.13 0.72%
suggestions off the charts. HOLDING FIRMS 3,354.87 44.21 1.34%
PROPERTY 1,560.49 16.58 1.07%
Last week, the PSE Index booked gains of 2.7%, as Santa Claus SERVICES 1,586.33 6.64 0.42%
arrived on time, reversing a near 2.0% slide in the preceding MINING & OIL 13,661.54 180.44 1.34%
week. December-to-date return stands at 5.4%, more than As of 1210H 12/23/10
twice the 10yr average for the month of 2.54 percent. Year- ASIAN MARKETS
to-date is at 36 percent, third running behind Indonesia COUNTRY INDEX LAST % CHANGE
(40%+) and Thailand (38%). JAPAN TOPIX 904.68 0.33%
JAPAN NIKKEI 225 10,355.99 0.75%
At the very least, the market has exceeded even the most CHINA HANGSENG 22,833.80 -0.30%
optimistic projections made at the beginning of the year – and CHINA SHANGHAI 2,781.40 -1.90%
by a large margin. The most bullish number then was 3,800, TAIWAN TAIEX 8,892.31 0.35%
or a 24.5% rise. SOUTH KOREA KOSPI 2,022.19 -0.37%
THAILAND SET 1,019.46 -0.25%
Data proving the relative strength of the domestic economy INDONESIA JKSE 3,625.27 0.38%
continues to trickle in. On the last working day before INDIA BSESN 20,028.93 -0.22%
Christmas, the BSP reported a record Balance of Payments SINGAPORE Straits Times 3,159.36 0.49%
surplus on the back of strong growths in both current and MALAYSIA KLSE 1,511.72 0.01%
capital and financial accounts. It need not be said that record- VIETNAM HO CHI MINH 473.05 0.06%
level remittances played a big part in this good news. As of 2219H 12/26/10

Yet, even as we look forward to continued growth for 2011, there are some challenges that lie ahead. Right on Christmas Day, the
People's Bank of China raised interest on one-year lending and deposit rates by 25 basis points. While it was a largely expected
move, particularly as the central economic planners of the world's second largest economy had hinted at a “tighter” monetary
policy for 2011, the timing may have surprised many. Europe, despite the bail-out of Ireland and the agreement among the
member economies to put up a rescue facility by 2013, is still not out of the woods. Spain and Portugal's fate will stay in the
market's crosshairs.
The technical clues are not encouraging either, at the very
least adding a dampening effect to what is generally an
optimistic outlook over the short term. The weekly chart
tells us why:
The top chart shows the weekly index drawing a descending
triangle with base between 4,030-4,060, which we mark as
the major support range. Obviously, the reaction rallies have
not been strong enough to sustain levels above immediately
preceding high points. Nevertheless, the drops have likewise
been stopped at the earlier cited support range. With the
price (index) levels now filling up most of the triangle, a
break from either end, becomes significant. The MACD
suggests the direction of this break – negative. Notice that
although the index has managed to hold support, the MACD
line has sustained its downtrend, five-weeks after it broke
under the signal line. Furthermore, the spread or gap
continues to widen even as the recent run-up has slowed 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 REPORT December 27, 2010_Tuesday
PSE Index Pts Change % Change Volume (m) Value (phpm) Advancers Decliners Unchanged
4,166.04 52.35 1.27% 1,543.20 4,228.76 86 45 34

pace of the opening. At the end of last week, the number has grown to -32.4132 from the preceding week's -32.0468. The
downside pressure remains marginally stronger. The lines offer no suggestions of an immediate pull-up.
The Accumulation-Distribution Line to the right lends further
caution to the near-term prospects. The line still shows
distributive pressure still stronger than accumulation, at this
pace, the index will find it difficult to sustain further reaches
north. Notice that the line peaked in the week when the index
closed at 4,286.87 and despite a further rise to 4,349.11 three
weeks later, the AccDist Line has lost a lot of ground. True
enough, the index fell to a closing low of 4,057.33 in the week
prior to last. The strong index performance last week failed
to attract enough volume to push the line past the downtrend.
Its bearish proposition still holds.
Our previous outlook for the index' year-end level was pegged
at between 4,100 and 4,200 and last week we saw at between
a narrower 4,130-4,160 range. We have not amended this
view.

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