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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)
DAILY REPORT, for Tuesday, August 24, 2010
PSEI: 3,613.37, +19.76 pts, +0.55%; Value of Trades: php4.96B ; Adv: 60 Dec: 70 Unch: 38

REVIEW & OUTLOOK

The present market's condition offers the counterargument to the adage, “what goes
up, must come down.” To wit: “What goes up, might go even higher.” Yet the
question begs, “up to what point?”

THE market picked up where it left off Friday, opening trades with a 5 point advance,
testing and breezing past the 3,600 level early. It continued to rise to as much as
26.27 points through mid-session before buyers took a pause, momentarily handing
over control to sellers. At the final bell, the latter managed to take back only 6.5
points off the high to close at 3,613.37, missing the closing level at the first day of
trades in 2008 (3,617.29) while inching past the 3,612.63 close of December 26, 2007.

The market's year-to-date return is now at +18.36% while the month-to-date registers at
4.9%, posing to be the biggest in 13 months after July 2009's 14.9%. Of course, there are
still a week and half worth of trades in the balance for the month. The biggest
completed monthly gain so far this year is April's 4.1%. The way stocks are moving, with
“corrections” limited to intraday dips, it appears the market is headed towards
breaking the 20% mark before it succumbs to selling pressure.

For Dow watchers, this deviates from the market's normative, theoretical action,
leading some to argue and re-agrue “de-coupling.” The Dow slipped -0.87% last week
while the PSE Index climbed over 3%. Asian markets are mixed.

Japan's Nikkei 225 fell to a 9-month low dragged by concerns the European debt crisis
is yet to abate. This was the conclusion investors may reached after reading into the
ECB's statement that emergency lending must be extended. The Nikkei is the worst
performing bourse among the most developed nations, losing 13% on the year.

While value turnover slowed to php4.66 billion Monday compared to Friday's


php5.147 billion, it remains above the averages. Decliners finally got the measure of
Advancers, beating the latter 70-60. Sectors were mixed with Services, Mining and
Oil and Holding Firms falling into negative.

As the market continues to advance, the slight dissipation of values points to a growing
wariness of the levels the index has reached over a relatively short period of time. The
negative disparity in the ADL lends further credence to this argument. Over the six days
the index has added 143.85 points or 4.14%, this despite the swings in global markets. Again, it is a question of when investors will give in to this wariness
as well as heed the warnings of technical indications to usher in the correction.

A general rise in optimism across all demographics may be the underlying motive force supporting the rise in equities, thus far. The +36 net
optimism among Filipinos of varying socio-economic and geographic states surpassed the +35 a year after the first People Power ousted Marcos
regime and installed the current President's mother in its stead.

CORPORATE DISCLOSURES: (Monday, August 23, 2010)

RIZAL COMMERCIAL BANKING CORPORATION. [pse: RCB, php25.35, unch]


dc 2010-5759
Wholly-owned thrift unit, RCBC Savings Bank booked a php469M in net income for the first six months of the year, 8% more than the same period
last year. The Bank has a total loan portfolio amounting to php30.2 billion, deposits of php39.4 billion and capital of php6.2 billion. It has 117
branches and 126 branches nationwide.

Since it broke out of its php18.50-19.25 trading band in mid-July, the stock has made a steep climb to today's closing of php25.35, php0.15 under the
intraday high. Almost parallel to the index, Monday's close is its highest since the php25.50 of December 11, 2007. Potential near-term price target is at
php28.00, or an upside of 10.5%. Again, akin to the technical condition of the over-all market, RSI(14), STO(10,3,3) indicates overbought conditions. Yet,

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, for Tuesday, August 24, 2010
PSEI: 3,613.37, +19.76 pts, +0.55%; Value of Trades: php4.96B ; Adv: 60 Dec: 70 Unch: 38

thus far this has not prevented investors from adding to their equity portfolios. Prudence dictates, nonetheless, to hold or wait for a corrective action,
possibly at php1.00 under (for a mild retreat) or at php22.50 in a major move. Note that last week, Financial issues cornered almost 20% of the aggregate
value turnover.

DFNN Inc. [pse: DFNN, php7.01, unch]


dc 2010-5762
An Option agreement for Betfair's purchase of a 40% stake in IEST (Interactive Entertainment Solutions Technologies, Inc) at a strike valuation of
$15M. IEST is an investee company of Philippine Gaming Investment, while DFNN is listed company of the latter. Betfair is the world's largest on-line
sports betting provider with more than 3M registered customers and processing an average of 5M transactions per day. The option, exercisable any
time, will expire on August 19, 2011. DFNN is considering increasing its holdings in IEST.

Technically, the stock posits a near-term BUY with STO(10,3,3) and MACD (12,26,9) threatening to cross over their signal and trigger lines, respectively.
RSI(14) at 49.22 is also bound to move above the 50-line should momentum or interest build up on the issue translating to increased trades. The
Accumulation-Distribution Line is drawing signs of a pick-up over the last week even as the price slid from php7.18 to Friday's php6.66. Monday's close at
php7.01, was accompanied by a volume of 245.8k, which although rather thin, is the biggest since the 1.3M turnover last July 26. In addition, the price
has inched past is 10pdEMA of php6.93, which now serves as the support price. Initial resistance is pegged at the prior high of php7.18 providing an
upside of 2.42%. Major resistance is at the php7.67-7.70 range.

Note: Owing to the delay in the posting of the daily quotation reports in the Exchange website, the value turnover per sector in the side bar above is left blank.

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