ACCORD CAPITAL EQUITIES CORPORATION Friday, August 24, 2012 PAGE 1

ECONOMIC NEWS

DBM govt spending up 22%

year-on-year, Govt expected to up

expenditure by 2H 2012

The Department of Budget and Management

(DBM) announced yesterday (August 23,

2012) that, all-in-all, government departments

and agencies have disbursed a total of

P162.55 billion for July 2012, a 21.8%

increase year-on-year. This was also

announced as the highest and fastest year-

on-year spending posted by the National

Government for 2012.

According to Budget Secretary Florencio

Butch Abad, disbursements for the

National Government as a whole are being

geared to accelerate for the second half of the

year, alongside increased activity in project

implementation among departments and

agencies.

Infrastructre spending for January-July 2012 have shown increases beyond 60% year-on-year, while Maintenance

and Operating Expenditures have helped increase spending, as seen by the more-than-30% increase vis--vis the

previous year. In effect, the fiscal deficit in July went up by P39.2 billion. Secretary Abad, however, has mentioned

that the fiscal deficit of the government is still within targeted deficit levels for 2012.

Asian equity indices down due to US, global concerns

Asian stock markets saw early declines in index value on the last day of the week. Japans Nikkei 225 lost 1.2% on

early trading, while South Korean KOSPI lost 1%. Australias S&P/ASX 200 also lost the same, at 0.9% downside.

The Dow Jones Industrial saw sharp declines yesterday amounting to a 0.88% decline after the US equities market

reacted negatively after Federal Reserve officials opposed the implementation of additional economic stimuli. The

debate will shift by next week to Federal Reserve Chairman Ben Bernanke, who is scheduled to speak in an annual

gathering of central bankers. The S&P 500 index also dropped by 0.81%, while NASDAQ ended 0.7% less than the

previous days index close.

Afternoon Value Change % Chg Mov

PSEi 5,143.35 59.49 1.14%

All Shares 3,429.29 32.53 0.94%

Financials 1,275.54 11.61 0.90%

Industrial 7,836.80 34.07 0.43%

Hldg Firms 4,303.93 102.70 2.33%

Services 1,759.09 4.90 0.28%

Mining&Oil 21,471.24 133.91 0.62%

Property 1,939.05 37.40 1.89%

MARKET ACTIVITY Friday, August 24, 2012

MARKET CLOSE (as of 3:30 pm)

Volume 2,086,950,768

Trades 17,811

Value (in 000s) 10,571,327,020

Advances 44

Declines 114

Unchanged 36

THE DAILY

S.W.I.M. (STOCK WATCH IN MOTION)

ACCORD CAPITAL EQUITIES CORPORATION Friday, August 24, 2012 PAGE 2 European pressure for Greeces economic reform continues to come from the Franco-German partnership of

Chancellor Angela Merkel and newly-elected President Francois Hollande. The two European leaders have said that

they will coordinate on their approach to Greece to keep pressure on the country at the heart of Europes crisis to

overhaul its economy, stressing the importance of the Greek government (led by Greeces new President Antonis

Samaras) to stand by to their obligations and wait for the results of the economic reforms to take root.

CORPORATE ACTION

SM Investments Corporation (SM) Disclosure # 2012-6282

SM Investments has announced in a press release statement through the PSE that the companys Board of Directors

have approved of the placement of primary common shares worth $150 million to institutional investors via a top-

up placement. According to undisclosed parties, the shares were sold at a huge discount, estimated at P700.00 per

share. The top-up, as announced, will enable the company to raise additional funds, as well as provide the free-float

liquidity ratios of the company through its publicly-listed SM shares. Proceeds of the additional funding will be used

for refinancing for its obligations, as well as funding for general corporate purposes.

As announced, Macquarie Capital (Singapore) Pte. Ltd. was placed as the underwriter and placing agent.

The share expectedly took a hit today as stock prices ended at P705.00 per share, a 5.37% drop from its previous

closing price of P745.00, which is also the lowest price for the day. Surprisingly, the stocks price also opened up

lower than yesterday at P710.00 per share. Consider the 700-peso mark as the primary support point as

institutional investors will probably peg their prices above the support line. POTENTIAL BUY /ACCUMULATE.

DIVIDEND DECLARATIONS

AUGUST 2012

Symbol Type Value Ex-Div Record Payable

TEL Cash P60.00/common

share

8/28/2012 8/31/2012 9/28/2012

EEI Cash P0.025/share 8/29/2012 9/3/2012 9/27/2012

SEPTEMBER 2012

Symbol Type Value Ex-Div Record Payable

LAND Stock 20% 9/5/2012 9/10/2012 10/4/2012

SMCP1 Cash P1.50/share 9/6/2012 9/11/2012 10/5/2012

PERC Cash P0.10/share 9/18/2012 9/21/2012 10/17/2012

LR Cash P0.04/share 9/25/2012 9/28/2012 10/23/2012

Sources:

http://www.dbm.gov.ph/?p=3943

http://www.marketwatch.com/story/asian-stocks-down-as-commodity-tech-shares-fall-2012-08-23

http://www.marketwatch.com/story/us-stocks-retreat-as-stimulus-debated-2012-08-23

http://www.bloomberg.com/news/2012-08-23/merkel-seeks-to-keep-greece-on-reform-path-in-hollande-talks.html

http://www.pse.com.ph/resource/disclosures/2012/pdf/dc2012-6282_SM.pdf

http://business.inquirer.net/78456/sm-investment-raises-150-m-from-sale-of-shares

ACCORD CAPITAL EQUITIES CORPORATION Friday, August 24, 2012 PAGE 3

DATA PROVIDED BY: THE PHILIPPINE STOCK EXCHANGE, INCORPORATED

(WWW.PSE.COM.PH)

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.

THE VIEWS EXPRESSED IN THIS ARE NOT NECESSARILY OPINIONS OF

ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS

OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES

MENTIONED.

The Daily S.W.I.M. (Stock Watch in Motion)

John Michael Gabriel Vida

Research Analyst

Accord Capital

Equities Corporation

G/F East Tower, PSE Center

Exchange Road, Ortigas Ctr.

Pasig City 1605

Telephone:

02 588 1978

Internet: www.accordcapital.ph

e-Mail:

johnmichael.vida@yahoo.com