DAY S HIGLIGHTS. Authored by: Juanis G. Barredo VP; Chief Technical Analyst COL Financial Group Inc.

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1 Issue Previous Current Change % YTD % Philippines 7,270 7,246 (23.65) (0.33) 5.93 Peso-$ (0.226) (0.45) 0.76 MSCI Phils PLDT US DJIA 20,597 20,551 (45.74) (0.22) 3.99 SP500 2,344 2,342 (2.39) (0.10) 4.59 Nasdaq 5,829 5, England 7,337 7,294 (43.32) (0.59) 2.11 Nikkei 19,263 18,986 (276.94) (1.44) (0.67) Hong Kong 24,358 24,194 (164.57) (0.68) 9.97 China 3,269 3,267 (2.49) (0.08) 5.26 US 30yr Bond Yr Yield (0.270) (1.13) (2.98) Dollar Indx (0.44) (0.44) (3.22) Gold 1, , Oil (0.24) (0.50) (11.15) CRB Index (0.37) (0.20) (4.89) Authored by: Juanis G. Barredo VP; Chief Technical Analyst COL Financial Group Inc. Juanis.barredo@colfinancial.com Disclaimer: All opinions and estimates constitute the judgment of COL s Equity Research Dept as of the date of the report and are subject to change without notice. The report is for informational purposes only and is not intended as an offer or solicitation for purchase or sale of a security. Philippine Equity Research Mar 28, 2017 Focus Items Issue Highlight Page Philippine Sub-index Review Some weakness seen 2 DOW Stay light and wait for support 3 PSEi Hold and watch its range 4 MSCI Phils EPHE Hold and watch stop 5 PHI Trading Buy 6 DAY S HIGLIGHTS US markets were weak but the Nasdaq managed to rally Europe was lower, Asia was clearly lower The US Dollar fell breaking its Feb lows, the Euro & Yen rallied; Gold rallied while Oil slid The Philippine PSEi shifted lower 23-pts but remains in range PSEi Trend Watcher: Wide Consolidation Range Notes: PSEi slides, some sub-index show cracks; PLDT rallies The local market shared declines with the rest of Asia with the PSEi slipping 23-pts for the day. And although the market breadth was kind of flat with 81 advancers versus 90 decliners, we did see some technical weakness from the sub-indices of Commercials & Industrials, as well as on Property and Financials (see page 2). Stocks like ALI, AP, BLOOM, FPH, HLCM, JFC, MAXS, X, MBT, MEG, MPI, NOW, PLC, PNB, PSPC, RRHI, SBS, SMC, and TUGS are examples of issues showing recent weakness. These sub-indices need a show of demand to counter the support breaches we have just seen. If not then these may put on more pressure on the index which now stands close to its 65-day MA Support (one that has not been broken since rising above it in the beginning of January). Well at least we did see some positive shifts from PLDT and its US counterpart PHI both of which where up over 3% and did break off from resistance nice!

2 Tech Spotlight --- Page 2 Philippine Sub-Index Review: Some weakness seen More demand needed to avert wilting tides: With the PSEi now inching its way towards its 65-day Mov Ave (7,215) support and nearing its consolidation lows of 7,123 the need for some demand muscle is upcoming After looking at its sectoral components we did notice that the Commercial & Industrials, Property, and Financial subindices (illustrated into the left column of stocks) seem to have shown some support lapses already clearly not a helpful note What did help was the rise of the Services index which was primarily lifted by recent recoveries from PLDT, Globe Telecom (both of which show decent chart formations) and ICTSI (but it is coming from an overbought swing and may need to correct a little) The Mining and Oil sub-index as is the Holdings index are still stuck in a consolidation and have yet to render a decision on their ranges This the first three indices need better showing in demand to avert what could be a down draft one that could put the PSEi under risk if heavier selling pressure is encountered PCOMM PPROP PFINC PSERV PMINI PHLDG

3 US: Dow Jones Tech Spotlight --- Page 3 Recommendation: Stay light and wait for support Support: 20,331 19,993 Resistance: 20,815 21,200 The Dow fell 45-pts and continues to react after breaking support of its up trendline and 32-day MA The support breach may entice the index to seek lower levels of support estimating them to be closer to 20,331 (65-day MA which sits nearby now) to 19,933 (38.2% Fibo Ret) The weak MACD may keep the pressure on as it feeds the corrective view; but coming from a recent up trend corrections should try to keep themselves sideways before scaling down to strongly ( this may drive some choppy swings first) Resistance estimate is adjusted down to 20,815 and is followed by 21,200

4 Philippines: PSEi Tech Spotlight --- Page 4 Recommendation: Hold and watch its range Support: 7,215 7,123 Resistance: 7,402-7,417 / 7,721 The PSEi slipped down 23-pts and remains within its consolidation It is however moving to test it 65-day MA which it has stayed over since early January if this breaks it may add pressure on the index to retest its 7,123 low Although given that the support range in the PSEi is still intact, some key issues are breaking support stops which may also add pressure to the index (at least PLDT is trying to counter this) The PSEi s MACD is still limp and may continue to keep this frail sign so long as the consolidation ensues The maintenance of the pattern still suggests a hold for now, but mark the 65-day MA or 2-month low (7,215-7,123) as your new stop to lighten R We need to see this S And not this

5 Tech Spotlight --- Page 5 US ishares MSCI Philippines: EPHE Recommendation: Hold (but watch stop) Support: Resistance: EPHE inched up $0.01 (+0.03%) and tries to hold over its 65-day MA as well However its MACD looks little hazardous and its seems to be preparing to cross down we may have to keep a close eye on support ( ) just in case we need to activate a stop These support ledges need to hold to keep the consolidation in place less it force in another reactive phase A support breach may take prices closer to or R We need to see this S And not this

6 PLDT-US (PHI) Tech Spotlight --- Page 6 Recommendation: Trading buy Support: Resistance: PLDT-US jumped 1.10-pts (+3.59%) and finally broke an important resistance barrier This recalls a trading buy as its short term trend has reactivated an upward bias An estimated channel high would place rally targets between $33.80 to $34.56 (260-day MA) MACD reading maintain a rally view and supports the rallying call Price parity of PHI to TEL stands at ($31.77*50.099= P1,591)