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 & OUTLOOK_for December 2, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4,002.88 49.18 1.24% 1.073 B Php5.941 B 63 62 53

Overview:
AUSTRALIA showed the negative impact of a strong currency in an export-led
economy. Q3 growth for the continent missed expectations by half at +0.2%
over the previous quarter, dragged by a -2.4% fall in exports. Tighter monetary
policy, set in place to curb inflation added to dampened consumer demand.
Year-on-year growth came in at 2.7%, also below the anticipated 3.4%. The All
Ordinaries is down by -0.33% at 4,660.90 as of 2142H EST.
Still on the subject of currency and exports, Japan's outlook for the sector was
tempered after it gained versus the euro. The Nikkei 225 posts marginal losses
of 0.05% at 9,931.80 while the broader Topix is in the red by -0.09% at 860.20.
Nevertheless, the S&P Asia 50 Index is showing gains of 5.04 points or 0.15% at
3,307.22 while the MSCI Asia Apex 50 registers a narrower uptick of 1.62 points
(0.20%) at 826.97. [all as of 2142H EST]
In the US, a statement by Fed Reserve Chairman Ben Bernanke added to
apprehensions over the forward timeline for a return to “normalcy” in the
world's leadingeconomy. Mr. Bernanke sees the current growth pace as “not
fast enough to materially reduce unemployment.” The Dow staged a strong
rebound off the day's low to close the session at 11,006.02, -46.47 points or
-0.42% below Monday's close.
In Europe, the debt worries have began to spread to other member economies,
with Belgian bond yields surging as investors sought additional premiums on
maturity risks. This, after the EU had put together an 85 billion euro bail-out
package for Ireland. The availability of this fund is just a first step in solving
that nation's problems. It has to substantially cut its debt-to-GDP ratios over
the next couple of years. The markets' crosshairs are now being trained
towards Portugal and Spain. Europe's major markets were all in the red in
Tuesday trades.
Here at home, yield on the 91-day T-Bills fell below 1.0% to 0.775% as investors
rushed to the safety of government issues, as the equity market sustains its
slide.
The BIR meanwhile was reported to have abandoned its collection goal for the year after missing its November target. The data will be out
on the 15th. The BIR contributes two-thirds of the country's revenue. Collections through October reached php670.8 billion, php29.2 billion
short of the goal. Pressure built on the agency after the government raised its GDP target to between 5.0% to 6.0% from 2.6% to 3.6%,
translating to an additional php30 billion to the full-year revenue projection.

Daily Wrap:
STOCKS jumped 14.16 points off the opening bell and did not look back, pushing the index back above the critical 3,970 support and
more important, past the psychological 4,000-line. Given the still negative “externals” and the Dow's decline tempered by late-session
buying, and mixed news on the local economic front, Wednesday would initially be tagged as a reaction rally – a technical rebound.
This point is highlighted by the value turnover coming it at only half Tuesday's total. Market breathed was flat, with 63 advancers to 62
decliners.

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 & OUTLOOK_for December 2, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4,002.88 49.18 1.24% 1.073 B Php5.941 B 63 62 53

The chart above shows that Wednesday's advance, although erasing a big chunk of the prior sessions' nearly 100-point decline, fails to
make a dent on the donwtrend drawn since November. The 10-pdEMA continues to trade below the 50-pdEMA, which it broke
Tuesday. Furthermore, OBV and MACD do not give off any signs of an impending trend reversal. The former maintains a distributive
bias with the MACD's negative spread slighty widening. Nevertheless, STO remains in oversold territory.

US market futures are marginally in positive territory, possibly suggesting a positive momentum carried over from last night's trades
which managed to narrow losses by the closing bell. Early indications from European markets, however, posit some challenges for the
continent's markets.

We maintain the local market's support at the 3,970-line while resistance and immediate upside target is at 4,100. Investors are still
expected to remain in the sidelines waiting for clearer signals both from the market's internals (technicals) and developments overseas.
Bargain-hunting and positioning for a possible last-surge for the year will provide buying interest to support the market. Over-all, our
stance is to accumulate selective issues, particularly focused on index-components while avoiding risky, speculative, new or rumor
driven propositions.

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