American stocks and commodity markets

Title

Creator

Ewing, Roy

Language

English

Source

The American Chamber of Commerce Journal Volume XXV (No. 4) April 1949

Year

1949

Rights

In Copyright - Educational Use Permitted

Fulltext

American Stock and Commodity Markets By Roy Ewing Sivan, Culbertson & Fritz, Inc. March I, 1949, to March 28, 1949 DURING the past month prices on the New York Stock Exchange moved in extremely narrow range, and volume of business done averaged only 745,000 shares per day. The high for the period, as measured by the Industrial Average, was 176.98 on March 14 and the low 173.66 on March 4. In spite of reassurances from Washington and some economists, caution continued as such business indices as car-loadings, department store sales, scrap and raw materials prices, and unemployment at a high since 1942, indicated that the recession is spreading. Further evidence was price cuts in many lines made in an attempt to hold up sales, and the Federal Re serve Board’s easing up on restrictions on install ment buying. Corporate news remained good because it consisted mostly of 1948 earnings records, but first quarter, 1949, figures will be more important for an indication of trend. Some production remained at high levels, as for example steel, which operated in excess of capacity for weeks until the coal stoppage necessitated some curtailment, but it is predicted that even steel will be in supply by the second half of this year. Technically, the market continues to drift with no decisive trend, but chartists can point out that the current business declines were predicted by the aver ages months ago. The present market firmness may indicate that the recession is to be of moderate size only and has already been fully discounted. If, on the other hand, the remainder of this year is to see severe decliness in general, the averages will probably decline into new low ground long before it happens. COMMODITIES were mixed and also moved in a narrow range. New York Spot Cotton is 33.52, as compared to 33.43 a month ago. February consumption was 640,000 bales, 18% less than for the same period in 1948. May Chicago Wheat is 214, down from 2191/2 on February 28. The supporting effect of a prospective loan could not overcome favorable new crop reports and the fact that all exporting countries will have wheat for sale this year. Distant futures are selling as much as $0.35 under the estimated 1949 loan level. Corn declined moderately, being 131-3/4, as compared to 134 last month. Export purchases were disappointing. March No. 5 Sugar declined from 5.42 on February 28 to a low 5.21 nominal on March 17 but has recovered to around 5.32. Manila Stock Market By A. C. Hall A. C. Hall & Company February 19 to March 18, 1949 Mining Shares PRICES have continued to sag during the past month. With buying interest at a very low le vel, small-scale necessitous selling has been suf ficient to drag the market down in a serious of very inactive sessions. The recent trend probably reflects the local bu siness outlook, which is uninspiring at the moment. Export prices, with the exception of sugar, are easier, most importers are overstocked with goods, and credit is tighter. In addition, recent political scandals are not conducive to investment confidence. For the present, therefore, the line of easiest resistance appears downward, but the technical posi tion is improving and any constructive developments could cause a sharp rebound, as there is little stock offering at current levels. Evidence of the market’s ability to respond to good news was provided by Su rigao Consolidated which moved against the general trend on reports of a substantially increased monthly production rate from now on. In addition to the foregoing, over-the-counter bu siness during the month included small lots of Balatoc at P2, and 17,000 shares of Benguet Consolidated, high P2.95, low P2.72, closing at P2.83. Commercial and Industrial San Miguel Brewery stock was in good demand at improved prices following publication of the Com pany’s annual report showing record profits for 1948. The demand for leading sugar issues continues, but business otherwise in this section was very quiet. P70.00 PH.00 Bank of the Philippine II. ..P64.00 P64.00 P64.00 Unchanged II 620.00 100.00 Central Azucarera de Bais ... 620.00 620.00 620.00 Unchanged 41 lota ..................................IH.OO 149.00 111.00 Unchanged 294 107.00 70.00 Central Azucarera del Pilar .101.00 101.00 101.00 Unchanged 167 71.00 10.00 Central Azucarera de Sara 60 00 40 00 C Ai“[ A........... d T i’"’ —- 7, 00 60 00 111.00 171.00 China Banking Corporation .. ----- 180.00b ------22.00 22.00 Filipinas Cia. de Segurot .... ----- 22.00b ------1.00 l.«0 Manila Wine Merchant!, Inc 1.80 1.80 1.80 Off 141.00 140.00 Metropolitan Insurance Co. .. ----- — 140.00b ------.101 .12 Philippine Oil Development Co............................................II .12 .14 Off 1.42 1.20 Philippine Racing Club ......... 1.28 1.20 1.20 Off 71.00 11.00 San Migued Brewery ............ 60.00 14.00 19.00 Up 100.00 71.00 Williams Equipment Co. Pfd.-------------- 71.00b ------10.00 7.00 Williams Equipment Co. Com. ----- ----- 7.10b ------Over-the-counter commercial business during the month included 400 shares Hawaiian-Philippines at P4; 5,000 Manila Jockey Club at P2; and 134 shares Victorias Milling, between P155 and P150. Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. THE annual meeting of the members of the As sociation of Credit Men, Inc., (P.I.) will be held April 19. At the end of almost two years of activity since the war, the Association finds itself in a very healthy condition. Membership now totals 69, the highest it has ever been, and several additional firms are considering joining. Interest in the work of the group continues to grow and the exchange of credit information will undoubtedly increase during the year. We notice that some foreign manufacturers are beginning to find their normal domestic markets growing too competitive and are looking more and more to the Philippines as an attractive outlet. Exporters willing to ship to this country during the 153

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