American stock and commodity markets

Title

Creator

Ewing, Roy

Language

English

Source

The American Chamber of Commerce Journal Volume XXIV (No. 12) December 1948

Year

1948

Rights

In Copyright - Educational Use Permitted

Fulltext

American Stock and Commodity Markets By Roy Ewing Sivan, Culbertson & FritzOctober 28 to November 27, 1948 THE feature of the New York stock market for the period was the collapse of prices following the Democratic election victories on November 2. Prior to that date the so-called Dewey boom had car ried the Industrial Average to a minor high of 190.19 on October 23. In the seven market days which fol lowed, however, this average plunged to 173.48, the lowest in eight months, for a paper loss of over $6,000,000,000. All market factors were ignored except the bearish influences expected from a Democratic ad ministration. These included (1) an anticipated 4th around of wage increases, supported by President Truman’s campaign promises which included repeal of the Taft-Hartley Bill; (2) an increase in corpora tion taxes, suported by the Administration’s apparent policy that any increase in expenditures should be met by increased taxes on corporate earning; and (3) the jfossibility of price controls; the President has re quested power to control prices and may receive this now. Many business indices continued to move in the opposite direction from the stock market. Steel pro duction reached record all-time highs and employment figures remained at record levels. For many cor porations the 3rd quarter was the most profitable in history and resulted in numerous extra dividends; for example, General Motors declared a $2 year-end divi dend against only $0.75 last year. Time Magazine pointed out that many stocks have a market value of less than their cash assets. Between November 5 and 7 both averages deci sively broke their previous minor lows, thereby, ac cording to the Dow Theory, confirming that the bull market which began in May of 1947 ended in JuneJuly of this year. This abnormally short bull move has let the Dow Theory in for considerable derision from those who point out that as a barometer of things to come it has been of little use in recent years. At any rate the averages are now predicting distur bing conditions in the future and these will be ap praised from a conservative level. CONTRARY to the securities markets, practically all commodities reacted favorably to the election, a result of renewed assurance that the agricultural support program will continue through 1949. New York spot cotton is 32.30, as compared to 31.65 a month ago, on good exports and trade buying. The December contract for Chicago wheat is 239-and was as high as 241 on November 22, up from 229-1/> on October 28. Large exports and heavy movement into the loan were biggest factors. December Chi cago corn also recovered sharply, sold as high as 146% on November 24 against 139-Vb a month ago. The record crop is offset by predicted record consump tion. The loan level, around 15^ higher than the pre sent market, will become more and more of a factor as forced marketing, for lack of storage, slackens. The sugar market in New York was firm and closed the period a few points higher than a month ago, the December No. 5 Contract at 5.34. The East Coast longshoremen’s strike is making supplies tighter. Manila Stock Market By A. C. Hall A. C. Hall & Company October 16 to November 15, 1948 THE mining share market has fluctuated inactively within narrow limits during the past month. With two exceptions, individual stock prices are little changed from the previous close. Lepanto has advanced on pleasing news from the property coupled with a further rise in the United States copper price, while Mindanao Mother Lode has registered a further decline with the publication of a progress-report disclosing that further problems have to be solved before a satis factory level of operations at the mine can be reached. The surprise result of the American presidential election and other foreign developments have had rela tively little effect on market sentiment. Generally speaking, investors are more concerned with the do mestic outlook. As mentioned in this column last month, changes of great importance are scheduled for the comparative ly near future. In addition to the much debated Im port Control measure, which is to become operative following the turn of the year, the Central Bank of the Philippines is expected to begin its operations soon. Divergence of opinion exists as to the probable econo mic impact of these factors. For the present, there fore, and until the general picture clarifies, investors are likely to remain largely on the sidelines. Manila Stock Exchange Average . Acoje Mining Company .............. Antamok Goldfields .................... Atok-Big Wedge Mining Co. ... Baguio Gold Mining Co............... Batong Buhay Gold Mines ........ Coco Grove, Inc............................... Consolidated Mines, Inc............... ltogon Mining Company .......... IXL Mining Company .......... Lepanto Consolidated Mining .. Masbate Consolidated Mining Mindanao Mother Lode Mines .. Misamis Chromite, Inc................. Suyoc Consolidated Mining Co. San Mauricio Mining Co............. Surigao Consolidated Mining United Paracale Mining Co. Co. High 72.55 P.31 .011 .53 .038 .0038 .028 .012 .0525 .048 .59 .018 .47 .21 .165 .255 .06 Low Close 66.52 68.31 P .27 P.31 .01 .011 .47 .49 .038 .038 .003 .003 .02 .025 .0105 .0115 .05 .05 .048 .048 .50 .53 .015 .015 .35 .35 .195 .195 .03a .165 .165 .24 .25 .05 .06 Change Total Sales Up .97 Up .04 Unchanged Up .01 Off .007 Off .001 Off .005 246.000 288,000 202,000 20.000 870,000 75,000 Up .001 4,706,000 Unchanged 42,500 Off .007 15,500 Up .07 508,500 Off .01.3 80,000 Off .10 190,000 Off .005 31,000 Unchanged 43,000 Unchanged 122,000 Off .005 22,000 In addition to the foregoing, unlisted mining is sues were traded as follows: Antipolo Mines, 115,000 shares at 11 and 8 centavos, closing at 11; Renguet Consolidated, 12,750 shares from P3.20 to P2.90, closing at P2.93; and Philippine Iron Mines, 425 shares at P31. Commercial and Industrial WITH the exception of Sugar shares which continue in demand at firm prices, the balance of this section has been neglected. Business done during t period was as follows: Bank of the Philippine Islands . Central Azucarern de Bais .... Central Azucarera de la Cariota Central Azucarera del Pilar . .. Central Azuearera de Sara-Ajuy China Banking Corporation .... Pilipinas Cia. de Seguros .......... Munila Wine Merchants .............. Metropolitan Insurance Co........... Philippine Oil Development Co. . Pampanga Bus Company .......... Philippine Racing Club ................ Snn Miguel Brewery .................... Williams Equipment Co., Pfd. .. Williams Equipment Co.. Com. . Low Close Change Total Sales P 55.00 P 55 00 Off P 8.00 42 4.40 570.00 570.00 Up 140.00 140.00 Up .... 80.00b 30.00 30.00 50.00a 1S5.00 185.00 Up 1.40 4.40 Off .... 140.00b .155 .17 Up ...................80b 1.21 1.24 Off 53.00 54.00 Off 95.00a .... lO.OOn 434

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