The Manila stock market during April

Title

Language

English

Source

The American Chamber of Commerce Journal Volume 9 (No. 5) May 1929

Year

1929

Rights

In Copyright - Educational Use Permitted

Fulltext

May, 1929 THE AMERICAN CHAMBER OF COMMERCE JOURNAL 23 The Manila Stock Market During April By W. P. G. Elliott Business in general has shown a steady in crease in practically all lines of trade, during the month just closed. Late cables from the United States relative to the nonimposition of restric tions on the islands' products have been of such reassuring character that a decided feeling of optimism for the future business of the year is heard on all sides. New Corporations.—The Sara-Ajui sugar cen tral capitalized at P3,000,000 and the United Shoe Machinery Corporation, capitalized at T6,000,000 have been registered. Another new corporation recently registered and already operating, is The Pure Cane Molasses Company capitalized at 1*100,000. This corporation is a subsidiary of the United Molasses Company of London, England. The new company pro poses to build tank installations in Manila and Iloilo for the storage of molasses, the company also owns a fleet of 20 modern tank ships for the transport of molasses for export. Supreme Court Decisions.—Two decisions recently rendered by the United States Supreme Court in Washington are unfavorable from a shareholders’ point of view, the first being that income from the sales of Philippine products in the United States marketed through foreign corporations are taxable under the Philippine internal revenue law. This question had been in abeyance since 1923, and while the importers in fact have been paying income tax on goods sold in the United States, the payments were always made under protest. The present decision serves finally to settle the question at issue. The second decision ruled that stock dividends in the Philippines are subject to in come tax, and this decision reverses the insular courts in the several cases brought before them. As the local supreme court was equally divided on this subject, it is thought that the question will be again brought up for trial and decision locally, in an endeavor to get a final ruling from the local supreme court. Publication of Banks Balance Sheets.—Amend ment of the banking laws to suit modern business conditions will be urged upon the legislature when it meets in July, it is reported. The al teration of the present banking laws that will be advocated, will deal with the publication of the balance sheets of the banks. It is pointed out that in the United States, banks publish their balance sheets monthly, stating the financial standing of the bank. The proponents of the amendment, however, do not advocate the monthly publication of balance sheets, but will urge a quarterly balance. This will be a The Philippine Guaranty Company, Incorporated (Accepted by all the Bureaus of the Insular Government) Executes bonds of all kinds for Customs, Immigration and Internal Revenue. DOCUMENTS SURETYSHIPS For Executors, Administrators, Receivers, Guardians, etc. We also write Fire and Marine Insurance Low rates iberal conditions ocal investments oans on real estate repayable by monthly or quarterly instal ments at low interest Call or write for particulars Room 403, Filipinas Bldg. P. O. Box 128 Manila, P. I. guarantee to the public, and at the same time serve as an advertisement for the banks.Banking and Exchange.—Total resources of Philippine banks continued their upward trend, until about the 20th of the month, when large OXYGEN Compressed Oxygen 99.5% pure HYDROGEN Compressed Hydrogen 99.8% pure ACETYLENE Dissolved Acetylene for all purposes WELDING Fully Equip ped Oxy-Ace tylene Weld ing Shops BATTERIES Prest-O-Lite Electric Stor age Batteries Philippine Acetylene Go. 281 CALLE CRISTOBAL, PACO MANILA, P. I. withdrawals were made for account of the quarterly sales taxes. These withdrawals were responsible for a sharp shrinkage in the cash position, and as a natural consequence foreign exchanges for gold dollars particularly, weakened considerably. The Stock Market.—The market has enjoyed a particularly busy month and as we have before pointed out a decided feeling of optimism prevails. Banks have been very active with fairly good sales of Bank of the Philippine Islands at Pl75. Hongkong Banks have been very actively traded in from HKS1250 the opening price, down to HKS1230'at the close. Chartered Banks had a large turnover at £19-3/8, and China Banks were placed at P90. Peoples Banks have been actively traded in at P107 and report an ex cellent first quarter for 1929. Surplus has increased by P33,316.64, deposits also increased P625,356.53 and total resources are now P10,000,000. In addition to the branch already estab lished at San Pablo, Laguna, another branch has been opened in Baguio, which will greatly aid in the development of the mountain capital. Iinsurances.—Unions of Canton after opening at HKS387 have declined to HKS380 on heavy trading. The Compañía Filipinas, Insular Life and Philippine Guaranty are firm with buyers at P3100, P350 and P350 respectively. Sugars.—Sugar shares have; shown more activity this month probably due to the reas suring cable advices that there will be no re strictions on Philippine sugars imported into the United States, and there is a growing feeling that the more seasoned sugar shares are buys at present prices. The San Carlos Milling Co. reports net profits at the close of the year, December 31, of $666,220.58 and the estimated crop for this year will be 30,500 tons according to the report of the company management. Bacolod-Murcias were in good demand and on fairly large transactions were placed at P7, Tarlacs were fairly heavily traded in at P170, and this central is, according to the latest reports, making an excellent showing for the year. Talisav-Silavs were placed at P25 and more are wanted at this figure. Carlotas on small tran sactions were done at P235. Pasudecos on heavy trading opened at P45, and closed at P46.50 bid with sellers at not better than P47. A large quantity of Bagos were placed in Hono lulu at P19.50. A fair sized parcel of Luzons changed hands at P1000. Victorias common were done at P165 and the preferred 9% were placed at Pl 10. Hawaiian-Philippines are in demand at P45. Plantations.—Plantations have been very inactive with no transactions reported in either Polos or Pamplonas. Mines.—Bcnguets have been heavily traded in at P2.75 throughout the month and more can be placed at this price. Balatocs have also continued steady with buyers at P2.40 and more of these are also wanted at the same figure. A record gold production is reported by the Benguet Consolidated Mining Co. and the Balatoc Mining Co. for the first quarter of this year. Benguet Consolidated produced during this period, gold valued at P839,658.92 and Balatoc during a similar period produced gold valued at P470,220.86. It is reported that Benguet will resume the payment of dividends in June. The new power plant on the Agno should be in operation by next October, thereby giving an impetus to exploration work and also sufficient power to run both plants as well as supplying current for lighting the city of Baguio and surrounding districts. Itogons continue firm and are nominal at P10. Industrials.—Philippine Educations have as usual been the outstanding feature in this list with large sales of preferred shares at Pl05. A small block of educations common are offered at Pl72.50, and this is the first offer to appear in the market for many months. Philippine Educations report sales for March, 1929 of P158,012.33, this being an increase over the same month last year of P35,942.28. Sales for the first quarter of 1929 show an increase of Pl 19,645.69 as compared with the correspond ing period last year. Philippine Educations have declared the usual quarterly dividend on the preferred of 2^% and have also declared a quarterly dividend on common shares of 3%. La Urbana 8% Liberadas were again active at P200. In the unlisted securities, Botica Boie common were placed at P200 for a moderate sized parcel and there are a few more offered at the same quotation. Bonds.—The bond market has been unusually active with large sales of Tarlacs 8%, Bais 8%. North Negros 8%, Polo Plantation 10%, all being placed at par plus accrued interest. Uni versity Club bonds are much in demand, but they will only be issued as the various stages of building warrants. The market closed firm with advancing price tendencies, the sales for the month aggregating 28,717 shares. INFORMATION FOR INVESTORS Expert, confidential reports made on Philippine projects ENGINEERING, MINING, AGRICULTURE, FORESTRY, LUMBER, ETC. Hydroelectric projects OTHER COMMERCIAL AND INDUSTRIAL ENTERPRISES BRYAN, LANDON CO. Cebu, P. I. Cable address: “YPIL,” Cebu. IN RESPONDING TO ADVERTISEMENTS PLEASE MENTION THE AMERICAN CHAMBER OF COMMERCE JOURNAL

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