ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
Outlook for Week 6_February 7 to 11, 2011_TD 026 to 030
1 of 1

OUTLOOK: REGION INDEX LAST Week % YTD %

Americas DOW 12,092.20 2.30% 4.40%
THE general rise in equity markets last Friday and for
S&P 500 1,310.87 2.70% 4.20%
the whole of last week may provide a semblance of
confidence going into this week's trades. Positive NASDAQ 2,769.30 3.10% 4.40%
data out of the US economy, a somewhat stable eurozone MERVAL 3,631.22 1.30% 3.05%
awaiting a new crisis-package to be launched next IBOVESPA 65,269.00 -2.10% -5.80%
month, and the simmering of tensions in Egypt, allowed EUROPE CAC 40 4,047.21 1.10% 6.40%
investors to focus on each country's broad fundamentals DAX 50 7,216.21 1.60% 4.40%
and individual coporate earnings. FTSE 100 5,997.40 2.00% 1.60%
ASIA-PACIFIC All Ordinaries 4,958.80 1.80% 2.30%
Philippine stocks continued to lose ground, giving up NZ 50 3,367.82 0.50% 1.80%
2.5% to end the week at 3,872.35. The Main index thus
Nikkei 225 10,543.50 1.80% 3.10%
closed under the 3,900-line for the first time since
early September. Some of the leads for next week are: Hang Seng 23,909.00 1.20% 3.80%
Shanghai 2,798.96 1.70% -0.30%
The BSP's Monetary Board will meet on Thursday, TAIEX 9,145.35 2.10% 1.90%
February 10 with the market not expecting any immediate KOSPI 11 2,072.03 -1.70% 1.00%
or near-term tweaks in policy rates which has been held BOMBAY 18,008.20 -2.10% -11.80%
at 4.0% and 6.0% overnight borrowing and lending, Southeast Asia JKSE 3,496.17 0.20% -5.60%
respectively, since July 2009. This, even as January KLSE 1,531.82 0.70% 0.80%
headline inflation came in at 3.5% year-on-year, half a
Strait Times 3,211.12 -0.60% 0.70%
point higher than December levels. Month-on-month,
prices generally increased 0.8% versus the preceding period's 0.5%. Core inflation marginally dropped to 3.3%
from 3.4%. The upward push in prices mainly came from the supply side (e.g. higher food and energy prices
brought about by increased distribution costs that resulted in turn from the elevated fuel prices in the world
markets.) This is highlighted by the slowing in the Producer Price Index for December to a 6.2% pace from
November's 7.2%. Major pulls were contributed by the machinery (except electrical), electrical machinery and
furnitures and fixtures whose wholesale prices contracted -19.9%, -18.0% and -11.4%, respectively.

Increased income levels, both nominal and real, should show up in increased consumer spending, translating to
more revenue for companies. Average family incomes rose substantially in both the bottom 30% (poor) and upper
70% from 2006 to 2009. In nominal terms, the increases amounted to 26.5% and 18.6%, respectively. A good 40%, at
least, are spent on food items. The uppper 70% generates savings of php44k annually while their counterparts in
the bottom 30% see an average deficit of php2k per year.

In the US, Federal Reserve Board Chairman Ben Bernanke testifies before the House Budget Committee on Wednesday
(11pm, Manila) This event is closely monitored by the markets for clues as to the future monetary policy. In
this specific instance, Mr. Bernanke may be pressed to issue a statement on the strength of the US recovery as
well as what strategies in terms of reducing the US deficit will be acceptable to the market. The deficit for
2011 is seen to reach $1.48 trillion or 9.8% of GDP. On Thursday (930pm, Manila) the number of initial jobless
claims applications is expected to fall to an annual pace of 411k, sustaining last week's significant slide to
415k from the preceding period's 454k. Consumer sentiment is seen to have improved further in January. The
report is due on Friday together with trade figures expected to show a widening of the deficit gap.

Having said that, the technical condition of the market remains tinged with a negative bias. We are looking at
an initial support at 3,780 – representing the 38.2% Fibonacci line measured from the February 2009 low to the
November 2010 high. As of Friday, the index has given up 35.4% of the gains it made through the cited long-term
period. Resistance is initially pegged at the 3,900 to 3,930 band.

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.