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, September 15, 2010 Wednesday
PSEI: 3,968.29, -4.31pts, -0.11% ; Value of Trades: php9.103B; Adv: 68 Dec: 81 Unch: 36

PSE Index (year-to-date)

REVIEW & OUTLOOK

IT HAD TO HAPPEN SOME TIME. Finally, the market retreated, interrupting its
nine-session surge with the latter two setting and resetting new all time highs.
Ironically, the slide took place on the day PNoy graced the opening of trades at the
Makati floor.

The Main Index edged lower by 4.31 points (-0.11%) to 3,968.29. The Industrials,
Services and Mining-and-Oil sectors however shrugged off the correction bug,
closing the day in positive territory. The latter registered the day's biggest advance
at 1.51% although its share of the value turnover pie remained a thin 7.5% of the
total.

A total of 2.764 billion shares changed hands with an aggregate value to php9.103
billion. Netting out block sales for the day, the figure is still more than twice the
year-to-date average at php8.884 billion. The value pie was almost evenly sliced
amongst the sectors with Industrials and Holding Firms getting the bigger portions
of over php2.0 billion each. The rest, except the Mining and Oil group, received at
least php1.0 billion each.

Yet whether this amounts to the correction investors have been anticipating, or just
a prelude to it, will determine the direction of trades up ahead. In fact, in the
context of yesterday's close, the index exhibited strength. After it breached but
failed to sustain the 4,000-line, the 30-company composite slipped by as much as 47.61 points to the intra-day low of 3,924.99. But as quickly as it
fell, it rebounded at almost the same pace that by the closing bell, it had recovered 90% of the day's fall.

The Dow slipped by -17.64 points to 10,526.49 as an early surge riding on promising retail sales data were balanced off by profit taking in
Financial counters. Banks had recently risen as a new set of capital regulations were announced under the Basel III rules, seen to prevent a repeat
of the crisis that befell the sector and which spread and mutated into an economic recession. The three main European markets were in the
green however.

From the vantage point of technical indicators, there should be a follow-through to Tuesday's slide. RSI (14) and STO (10,3) remain in overbought
territory across all time-frames (daily, weekly, monthly.) Yet, as recent experiences, including yesterday's, show, investors have been quick to
pick-up shares at the slightest retreat. On top, we have pointed out how the index “covered” 90% of Tuesday's intra-session decline. Major
support levels of the index are 3,810 (near-term), 3,540 (medium-term) and 3,130 (long term.) The previous all-time high of 3,873.50 will be a
psychological support level. We keep resistance at the upper limit of our twice-adjusted year-end index target of 4,100.

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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.
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