Manila stock market

Title

Manila stock market

Creator

Hall, A. C.

Language

English

Year

1949

Rights

In Copyright - Educational Use Permitted

Fulltext

dustriai Average broke through the previous minor low of last November. There is considerable opinion that the market already has discounted fully any re cession in business that is likely to happen this year, but chaitists believe that the averages will retreat to lower levels, from where developments will be ap praised. ALL commodities broke sharply in the early part of the period under review, but most recovered sub stantially in the latter weeks. New York Spot Cotton sold down to 32.64 on February 8 but has recovered to 33.58, practically unchanged from a month ago. Exports remained at high level; government loans now total approximately 4,500,000 bales. The May Contract of Chicago Wheat sold as low as 196i/2 on February 8 but is 218 %th today, unchanged from a month ago. Improved world production in addition to heavy supplies and lack of storage more than offset heavy government buying and the latter’s announced intention to continue tremendous exports. May Chi cago Corn broke to 116 % asked on February 8, but has recovered to 132% down from 140% on January 28. The huge crop appears to have found a level at about $0.30 below the loan. The carryover is expected to be a record high. Sugar prices are up substantially from a month ago, the March Contract of No. 5 being 5.43 as com pared to 5.26 on January 28, reflecting a strong sta-. tistical position and rumors of possible strikes in Puerto Rico. Manila Stock Market By A. C. Hall A. C. Hall & Company January 16 to February 18, 191>9 Mining Shares FURTHER strength in active trading carried the market forward into new high ground by the be ginning of February. Since then, profit taking has caused a moderate decline, with trading volume showing a decided tendency to dry up. The market action was about as expected. The sharp advance since the year-end has weakened the market’s internal position, and a period of consolida^ tion appears necessary before sufficient strength can be generated to resume the forward movement. Atok-Big Wedge and Mindanao Mother Lode made further gains, but base-metal issues were easier, particularly Lepanto. The decline in the latter stock was possibly influenced to some extent by the fear that recent weakness in United States commodity markets might overflow into the metal group. While the copper price has remained firm up to the present, scrap prices, much more sensitive than primary prices, are showing a slightly easier tendency. In addition to the foregoing, over-the-counter business during the month included 54,000 shares of Benguet Consolidated, P3 high, P2.90 low, closing at P2.95: Philippine Iron Mines traded at P31; and 200,000 shares Taysan “A” which changed hands be tween 15 and 13 centavos, closing at 14. Commercial and Industrial Shares Leading Sugar shares continue in demand at im proved prices. Cariota, on an ex-cash and stock dividend basis, closed equivalent to a further advance of P7 per share. San Miguels were easier on some liquidation in an empty market. 1941-49 Range Over-the-counter Commercial transactions in cluded 100 shares Jai-Alai at P8; 8,000 shares Manila Broadcasting at Pl.27; 200 shares Manila Jockey Club at P2; and 296 shares Victorias Milling between P160 and P155, but mostly at the latter figure. Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. A FEW months ago we mentioned that the granting of discounts for payments made before the duedates of invoices, was a device little used in the Philippines to speed up collections. While the prac tice might be successful in a few instances, we serious ly question its effectiveness for Manila business houses in general. We are afraid that the only custom ers to take legitimate advantage of the discount would be those who would pay their bills on time in any event, in which case of course there would be no par ticular point in granting the discount. On the other hand, we suspect that any premium for paying bills before they are due would be considered as a regular trade discount by some customers and would be de ducted whether earned or not. Membership in the Association of Credit Men, Inc. (P.I.) totaled 67 at the end of last month and the applications of additional firms which desire to join are being considered from time to time. Besides its regular function of acting as a clearing house for credit information, the Association offers special ser vices of benefit to its members, including warnings against the new methods of defrauding business houses that crop up now and again. 109

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