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 3_January 17 to 21, 2011_TD 011 to 015
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Quick Review and Analysis:

The market ended week 2 sustaining losses of -1.7%, following a flat close in the
week prior, pulling the index to a year-to-date result of -1.6%. Nevertheless, last
week was more upbeat,

For one, the trading range expanded 4x with the week's high-low band spanning
198.51 points versus the January 3 to 7's 49.38 points. The daily average range
consequently widened to 68.7 points, over 2.5x the preceding week. Much of this
rise in volatility took place in the first two days with the index moving nearly 100
points, sadly, in the negative direction. Nonetheless, it spent the last three sessions
narrowing losses by nearly 60 percent.

The weakness at the open resulted from a weak jobs report in the US Friday plus the uncertainties that hovered in Europe as Spain and Portugal were then
preparing to float bonds in the international debt market. The reception and take-up of the offering was to be among the initial clues to the future of the region
hobbled by the massive debt-burdens by member economies.

The pick-up in trading activity at the Philippine equity market is highlighted by value turnover for the first two weeks expanding 1.8x year-on-year. As of last
Friday, php49.472 billion worth of shares changed hands, for a daily average turnover of php4.497 billion compared to only php1.615 billion average over the
same period last year.

MINING & OIL, Compared to end-2010 distributions, the share of the Industrial, Property and Mining & Oil
10.64% FINANCIAL, 9.21%
sectors increased by 1.03, 3.83 and 4.23 percentage points, respectively. Flows to the
SERVICE, 11.81%
Financials dropped to 9.21% from 13.65% and Services to 11.81% from 16.24%. The share of
INDUSTRIAL, 31.01% Holding Firms was almost even, narrowing slightly to 19.28% from 19.51%.

PROPERTY, 18.05%
The picture is even more significant when ranged against full January 2010 totals: Financials,
Holding Firms, Property and Mining & Oil are off the block with a stronger value flow.
Industrials is steady with its leading 31%, while Services continues to be the least attractive
HOLDING FIRM,
19.28%
attracting even less than it did at the frist month of last year.

Total foreign trades reached php39.704 billion in the first two weeks of January, 60% more than the same period last year. However, on a net basis, this year-to-
date is narrowly favoring the sell side, with -php2.131 billion, a turnaround from last year's marginal php1.511 billion net purchases. The over-all picture from 2010
remains unchanged however, with current levels representing -9.8% drop in their position since the November 4 top of php57.369 billion.

Last week, foreign funds flowed positively into MWC (php103M), URC (php71M), BDO (php59M), LND (php56M) and DMC(php56M.) The biggest net outflow
were recorded in FPH(-php180M), SCC(-php141M), EDC-(php126M), URC(-php106M) and ALI(-php104M.) Combining with first week totals, the top five net
buying of at least php100M were registered by MPI(php3.81, -2.1% ytd), PCOR(php16.22, -13.8% ytd), PX(php15.22, -5.5% ytd), MWC(php18.64, -2.8% ytd)
and MER(php267.40, +17.3% ytd.) Alternatively, the top five stocks that saw net foreign selling of at least php100M were MBT(65.70, -8.8%), AP(php29.60,
-4.8% ytd), AGI(php11.94, -4.5%ytd), ALI (php15.60, -5.2% ytd) and EDC (php6.08, +3.6%.)

the Philippine Economy

The outlook for the country's growth this year and the next remained optimistic. The World Bank even found reason to revise upwards the 6.2% projection it
issued in October to 6.8%. This is at par with the ADB figure and just marginally below IMF's 7.0%. They are in fact even more bullish than we are, with
government targeting the 5.0% to 6.0% range. These numbers are seen to be surpassed, carried by the 7.5% average through Q3 last year, even as the last
quarter growth is anticipated to have tempered. For the current year, the positive outlook for the electronics and semiconductor industry, aggressive BPO
expansion but tempered by the strong peso, is seen to translate to a 5.0% growth, slower than government's 7.0% to 8.0% projections.

Bank lending grew 9% year-on-year in November to php2.244 trillion. The BSP sees the domestic banking industry as healthy with an expanding deposit base,
sustained profitability and capitalization and asset quality kept significantly above regulatory levels. Loans growth was observed across all segments, led by a 16%
increase in the manufacturing sector's availments. Consumer loans (Household consumption & auto loans) both grew by double digits, while credit card loans
increased by 8.0%.

the rest of the World

Last Friday, US investors regained their confidence following the prior week's poor jobs report with a number of economic data showing more clues that the
economy continue to pick up, albeit still shakily. Industrial production for Decmeber beat estimates at 0.8%, pushed by demand for business equipment and home
electronics. Manufacturers' have ramped up production, with capacity ulitization rising to 76% its highest in more than two years, on anticipation of accelerated
consumer spending and exports. This, nevertheless remains slower than the 20 year average of 80 percent. Retail sales rose 0.6%, a sixth month of increase,
albeit falling short of forecasts. The Dow finished the session up by 55 points to 11,787.38.

The job market continues to weak, however, with the factory-led growth failing to create an impetus to more hirings, keeping the unemployment rate high. The
Fed has singled out the jobs market as one of the key drivers of the resurgence of the US economy. Ben Bernanke, the Chairman, sees US GDP to grow at a 3%-
4% pace this year.

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.
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 3_January 17 to 21, 2011_TD 011 to 015
2 of 2

Inflation is becoming a major worry and a potential threat, however. China, which just last Christmas hiked interest rates on deposits and loans by 50 basis points
to rein in the rise in consumer prices, have raised reserve requirements by 50 basis points. Germany is experiencing is fastest inflation in more than two years and
India's pace quickened. US consumer prices exceeded estimates.

OUTLOOK for Week 2_2011

US markets are closed Monday for Matin Luther King Day.

The spate of good news from the US at the close of last week may play into local's confidence and bouy up positioning for the release of Q4 and full-year 2010
earnings results -- the growing anticipation of a slower-than-estimated Q4 growth, notwithstanding. Absent the US market, some may take to the sidelines,
particularly as the weekend remained silent on developments and news either way. Furthering the positive note going into this week are the positive numbers for the
country.

The run-up over the last three sessions of last week impacted significantly on
the charts, lending a positive spin heading into this week.

The Index managed to rise above both 10pd, and 50pd EMAs suggesting a
build-up of momentum, confirmed by both STO and MACD. The former
provides a twin BUY signal by (1) emerging from the oversold line and (2)
crossing over the trigger line. MACD on the other hand, shows the negative
spread has narrowed indicating the dissipation of such pressure and laying the
foundations for another decent run by equity prices.

This week will see a test of the 4,170 resistance after the market showed last
week the strength of the 4,000-psychological line. Nevertheless, we still refuse
to throw caution out the window as the weekly and monthly charts continues
to suggest near-term caps to these rallies. For although the AccDist Line has
risen over the last two sessions, it is still under the prior uptrend line and will
require a period of basing action for a more sustainable advance.

A series of economic reports in the US by mid-week will provide more

volatility. Building Permits, which will provide clues as to the health of the
housing market, will be released Wednesday, followed by Existing Home Sales
and the Jobless Claims on Thursday. The consensus are all optimistic.

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.