Manila stock market
Media
Part of The American Chamber of Commerce Journal
- Title
- Manila stock market
- Creator
- Hall, A.C.
- Language
- English
- Source
- The American Chamber of Commerce Journal Volume XXIV (No. 12) December 1948
- Year
- 1948
- Rights
-
- 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 Unlisted commercial stock traded during the month included: 12 shares Atlantic Gulf and Pacific Co. at P350; 38 shares Batangas Transportation Co. at P220; 260 shares Jai Alai Corporation at P17 and P16, closing at P16; 1,000 shares Manila Jockey Club at P2.05; 200 shares Philippine American Drug Co. (Bo tica Boie) at P133; 50 shares Philippine Trust Co. at P70; and 505 shares Victorias Milling Co. at P135 exdividend. Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. LAST month we commented on the unnecessary use of collectors for picking up checks that could easily be sent through the mails. We have been discussing the matter with several of our associates in other businesses, and everyone seems to be in agree ment that the whole system of presenting bills for payment and effecting collections in the Philippines is outmoded and should be modernized. The present system, aside from being inefficient and expensive, is wide open to abuses. It is frequent ly used as a device for delaying payment as long as possible. Collectors are often required to make several calls at one location before finally obtaining settlement of an account. The usual excuse is that the invoices are being checked or the cashier is out at the moment. Some business firms, for reasons best known to themselves, prefer not to maintain bank accounts but to make all payments in cash. However we see no reason why such establishments should not be re quired to deliver payments when they become due rather than to wait until a collector calls. We believe there are several steps which might be effective in reducing the necessity for collectors. A great deal would be accomplished if each manager reviewed the routines in effect in his own office to determine whether the methods of auditing and pay ing invoices are efficient. The granting of discounts for payments made before due dates, is another device which might be helpful. This practice is rather wide spread in the United States but is used relatively little in the Philippines. The sending of notices to customers and vendors to the effect that all payments are to be made by mail, should also serve to reduce the need for collectors. The Association of Credit Men, Inc. (P.I.) has recently recognized the need to revamp our oldfashioned collection methods and it is hoped that in the near future a campaign will be undertaken to solve the problem. Insurance OPEN LETTER to Members of the Senate and Congress, The Mayor and People of Manila Dear Sirs:—During this year several bills have been submitted to Congress affecting insurance com panies—some were very rightly disregarded, but the arguments against others were not so obvious and therefore received consideration. However, the fact that such bills were drafted points to a lack of un derstanding of the principles of insurance, and there fore companies transacting this class of business feel that these principles should be presented to the public to prevent legislation which would ultimately react to their detriment. The whole function of insurance is to “distribute the losses of a few over many,” and for this purpose the companies act as trustees for their policy holders. It follows therefore that any legislation which is dis criminatory against insurance companies, reacts on the policy holders, and therefore in voicing our pro test, we are endeavoring to protect the interest of the insuring public. The matter of immediate interest is House Bill No. 1350, which was passed by Congress and became Republic Act No. 280, without any opportunity being given for insurance companies or the insuring public to present their case. By this Act the Municipal Board of Manila is empowered to pass an ordinance whereby fire insurance companies will pay to the City a tax of Vi % on premiums derived from policies issued on properties situated in Manila, for the pur pose of providing equipment and upkeep of the Ma nila Fire Department: it will be seen therefore that it is suggested that the “protection of the many should be paid for by the few” whereas in actual fact the uninsured are more interested in fire protection. The proposed ordinance has received considera tion and has been approved in principle by the Mu nicipal Board, but we trust that we will be given a hearing before the ordinance is passed. For this pur pose the following Memorandum of Protest has been drafted:— (1) The Manila City Fire Department operates for the benefit of all residents in Manila, and therefore the entire unkeep of this Department should be borne through taxation by the whole community. There is no justification for the view that part of the cost of the Fire Department service should be met by a contribution from the insurance compa nies. (2) The cost of such a contribution, as proposed in the Act, would necessarily fall on the insuring public and would then lead to a position whereby a service which is available to all is subsidised by one section of the community which is prudent enough to insure, and not by the other and less pru dent section which does not insure—a position which is clearly indefensible. (3) Insurance companies are at present paying a Pre mium Tax of 1% to 3%. A Stamp Tax of l-^%, paid by the insured, is also levied on all policies of insurance. In effect therefore the present proposed tax of would result in an addition to direct taxes already borne by the insuring public and insurance companies. We respectfully submit that in our opinion the present taxes should be more than suf ficient to provide funds for the equipment and upkeep of the Manila Fire Department. (4) We submit that were this ordinance to be enforced it would be descriminatory against fire insurance compa nies, in corroboration of which argument we quote the fol lowing extract from a report by a Royal Commission on Fire Brigades:— * “So far as any question of principle is concerned there appears to be no more reason for the Fire Department of an Insurance company to subsidize Fire Brigades than for the Marine Department of subsidize light houses or the Burg lary Department to subsidize the police.” To illustrate the injustice which such a tax would have on the insuring public we quote the fol lowing figures from the Manila Fire Department’s latest report:— "FIRE LOSSES ON AUTO-TRUCKS. BUILDINGS. AND CONTENTS Auto-Trucks Buildings Contents Total 1. Value of Property Involved ... P373,150.00 P14.172.078.00 P18.449.703.79 P32,994.931.79 2. Value of Insurance thereon .... 111.000.00 5.511.360.00 4.716,500.00 10.33S.SG0.00 from which it is reasonable to assume that approxi mately one-third of the property in Manila is insured, and yet it is suggested that prudent owners thereof