8/9/2019 Market Report for August 24, 2010_Tuesday

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ACCORD CAPITAL EQUITIES CORPORATIONGF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)

DAILY REPORT, for Tuesday, August 24, 2010PSEI: 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 goesup, must come down. To wit: What goes up, might go even higher. Yet thequestion 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 as26.27 points through mid-session before buyers took a pause, momentarily handingover control to sellers. At the final bell, the latter managed to take back only 6.5points off the high to close at 3,613.37, missing the closing level at the first day oftrades 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 at4.9%, posing to be the biggest in 13 months after July 2009's 14.9%. Of course, there arestill a week and half worth of trades in the balance for the month. The biggestcompleted monthly gain so far this year is April's 4.1%. The way stocks are moving, withcorrections 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 weekwhile 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 crisisis yet to abate. This was the conclusion investors may reached after reading into theECB's statement that emergency lending must be extended. The Nikkei is the worstperforming bourse among the most developed nations, losing 13% on the year.

While value turnover slowed to php4.66 billion Monday compared to Friday'sphp5.147 billion, it remains above the averages. Decliners finally got the measure ofAdvancers, beating the latter 70-60. Sectors were mixed with Services, Mining andOil and Holding Firms falling into negative.

As the market continues to advance, the slight dissipation of values points to a growingwariness of the levels the index has reached over a relatively short period of time. Thenegative 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 warinessas 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 netoptimism among Filipinos of varying socio-economic and geographic states surpassed the +35 a year after the first People Power ousted Marcosregime 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 2010-5759Wholly-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 periodlast 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 theintraday 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 atphp28.00, 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 TOOTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN ISFROM 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, WESHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THISREPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THEINDUSTRIES MENTIONED.

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8/9/2019 Market Report for August 24, 2010_Tuesday

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ACCORD CAPITAL EQUITIES CORPORATIONGF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)

DAILY REPORT, for Tuesday, August 24, 2010PSEI: 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 aggregatevalue turnover.

DFNN Inc. [pse: DFNN, php7.01, unch]dc 2010-5762An 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-linesports betting provider with more than 3M registered customers and processing an average of 5M transactions per day. The option, exercisable anytime, 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. TheAccumulation-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 atphp7.01, 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 pricehas 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 anupside 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 TOOTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN ISFROM 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, WESHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THISREPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THEINDUSTRIES MENTIONED.

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