ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
DAILY REVIEW & OUTLOOK for TD October 19-20, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4,215.11 -24.03 -0.57% 2.349B Php4.485B 44 86 54

DAILY WRAP of October 19, 2010_Tuesday

LOCAL share prices skidded for a third day, testing the 4,170-
support before buying activity picked up to narrow the losses. The
PSEI closed at 4,191.25, 24.03 points or -0.57% under the prior day's
level.

Value turnover remained weak relative to the month-to-date and

September averages. A total of 2.349 billion shares worth php4.485
billion changed hands.

Sectoral performances were mixed, however, with Financials,

Holding Firms and Properties bucking the main trend. The three
combined for 53.6% or php2.406 billion of the day's aggregate.
Value was fairly distributed among the sectors except for Mining &
Oil which cornered just 12.2 percent of the pie.

Decliners continued its mastery over advancers, out numbering the

latter almost 2-to-1 while the number of unchanged rose to 54.

Over-all foreigners were net seller, albeit concentrating their net

purchases on Financial, Holding Firms and Service issues.

Ironically, most of Asia are in the green led by a 1.58% gain in

Shanghai. The Dow index futures however is down -32 and so are
the three major European bourses.

OUTLOOK for October 20, 2010_Wednesday

THE three day slide accounts for 42.13 of the 53.80 points decline off
the all-time peak of 4,245.05. Furthermore, it has narrowed the
month's gains to just 2.22% or less than a hundred points. If it is any
consolation at this point, the index has been able to hold above a
major support line, 4,170, dangerously testing it yesterday.

We have begun to hear of concerns that the “bull” has weakened and
that its time in the arena is about to run out. Add to that the common
perception that it appears like a short-run. That the bull has
weakened, we pose no counter-argument. It had become evident
when we pointed out how the ADL failed to support the rise to the new
highs. But we qualify that we find some strength at least over the
short term. With respect to the time having run out, we hold any
judgment on that at present. In the context of the entire advance, the
recent aggregated 53 points decline does not seem much. But we shall
keep a close tab on the underlying technical indicators, most especially
readings off the ADL. On the third point that it seems like a short run

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 REVIEW & OUTLOOK for TD October 19-20, 2010
PSE Index Pts Change % Change Total Volume Total Value Advancers Decliners Unchanged
4,215.11 -24.03 -0.57% 2.349B Php4.485B 44 86 54

(granting, without admitting the premise that it is about to end), it appears to be more a function of a rather belated recognition.

Having said that, however, we find equities continuing to be

attractive for the balance of the year. The onset of the q3
reporting season as well as the Cebu Pacific [CEB] debut next week
should raise liquidities back to the two-month averages.

Nothing has changed in the country's broad economic

fundamentals, and consequently on the expectations of better
financial and operating results this q3 and for the full year.

Over the short term, the indicators as shown in the chart, paints a
not-too-encouraging picture. But recall that only a few weeks
ago, we had been practically begging for the market to retreat and
open up buy windows. That opportunity is being presented to us
now.

The 4,170 support will be tested, and judging by yesterday's action, we can fairly expect the level to hold up. Nevertheless, a contrary move
will find buyers waiting at the next level seen at the 4,120-4,130 range. The 4,200 line now reverses its role from psychological support to
resistance. The full-year target and resistance continues to be at the 4,2450-mark.

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