ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, PHILIPPINES 1605 (632)687-5071 (trunk)
MARKET NOTES_Week 19_TD90_May 10, 2011_Tuesday
source: www.pse.com.ph

DISCLOSURES:

ABOITIZ POWER CORPORAITON [pse: AP]

Disc. No. 2011-3497 COMPROMISE AGREEMENT ON BAKUN HYDRO PLANT
AP's wholly-owned subsidiary, Aboitiz Renewables, Inc (ARI) has entered into a Compromise Agreement with Pacific Hydro Bakun, Inc
(PHBI), putting an end to a shareholders' dispute that arose from the pubic bidding of the 70MW Bakun Hydropower Plant IPP
Administration contract, following the satisfaction of certain conditions pursuant to a Memorandum of Agreement entered into by both
parties last March 31, 2011. The MOA gave ARI full ownership over Luzon Hydro Corporation, formerly a joint venture between ARI
and PHBI and which owns and operates the Bakun plant. PHBI is a wholly-owned unit of Pacific Hydro Pty Ltd. of Australia. The
transfer of ownership was valued at approximately USD30 million. ARI thus assumes full ownership of the subject power plant located
in Ilocos Sur.

Lower average selling prices, lower net generation and depressed demand pulled the Company's consolidated net income -34% lower
to php5.1 billion. The main drag was posed by the power generation business whose income contribution dropped to -35% to php4.9
billion. Netting out non-recurring incomes, the number drops
further to php4.4 billion compared to php7.1 billion for the
same period last year. Nevertheless, the power distribution
segment more than doubled its income contribution to php454
million, albeit accounting for only 8.9% of the pie. On the
balance sheet side, the Company remains healthy with assets
expanding 4% from end-2010 levels. It likewise remains very
solvent with current ratio improving to 3.3x from 2.6x and net-
debt-to-equity marginally lightening to 0.7x from 0.8x, both
compared to end-2010 numbers.

AP share price last topped at php31.80 less than a week prior

to the release of its Q1 earnings. It has since dropped to a low
of php29.95, before staging a modicum of a rebound in the two
sessions this week. The recent pick-up in price may have been
induced by technically oversold conditions after STO(14,3,3) fell
to as low as 5.51 on the same session it hit the earlier
mentioned low. Although the accumulation-distribution line has
yet to show a significant reversal signal from its distributive
trend, there are early suggestions from other measures of a
possible sustained push north. STO has crossed over the
trigger line simultaneously emerging from oversold territory.
MACD(12,26,9) spread has leveled off in the two sessions
accompanying the +1.20% price action, indicating, at the very
least, a possible support at the php29.25-mark. Nevertheless,
we do not discount a further fall towards the major support line
represented by the 150pdEMA at php28.1502, thereabouts.
ACCUMULATE [BUY & HOLD: Entry Range @ php28.00-
29.25

PHILIPPINE LONG DISTANCE TELEPHONE CO. [pse: TEL/ nyse: PHI]

Disc. No. 2011-3485 Q1 2011 RESULTS
The Company's consolidated net income slid -6% year-on-year in Q1 2011 to php10.7 billion as service revenues fell -4% to php34.6
billion, -php1.4 billion compared to Q1 2010. The drops however resulted mainly from foreign exchange translations with the local
currency strengthening between 4.0% and 5.0% over the
comparative periods. Had the peso been stable, core net income
would've expanded 3.0%, instead of only 1.0%. Note that 28% of
the company's revenue are dollar-denominated. Furthermore,
the core figures was depressed by the php300 million difference
between Meralco's core and reported net incomes. Revenues
from traditional streams dragged positive contributions from
newer counterparts. Nevertheless, effective cost and expense
controls translated to a two-percentage point widening in
EBITDA margins. This despite a 1.0% narrowing in nominal
EBITDA to php21 billion. Holding promise for the Company's
forward prospects is the continued growth trajectory of its DSL,
Broadband and Internet Service Revenue, which now accounts
for 13% of the total.

At Tuesday's action, TEL shares extended its romp to a second

day, adding 3.1% (php74.00) to Monday's 2.5% (php58.00) rise.
More importantly, the stock has risen above the 10pdEMA,
which in turn has sustained levels above both the 50pdEMA and
150pdEMA (both flat), indicating a possible breach of the
php2,500-2,520 resistance, carried over by positive momentum.
STO(14,3,3) has breached the trigger line upwards, and we can
fairly expect the MACD line to do the same relative to its signal line. MOMENTUM BUY

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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 CO MPLETE 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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