Stock and commodity markets

Title

Creator

Hall, A. C.

Language

English

Year

1950

Rights

In Copyright - Educational Use Permitted

Fulltext

the year, which brought on the Exchange Control on De cember 9, 1949. However, the drop in this Reserve for December was only P8,045,000 as against P58,500,000 in November. Governor Cuaderno of the Central Bank has pointed out that this actually represents an increase in the reserve from the lowest point reached early in December and he indicated his confidence that this reserve would increase as Exchange Control became more effective. Money in circulation was less than in November but still greater than any other month since April. The total of Loans and Advances (advances to the Government and the Philippine National Bank) and Do mestic Securities (representing advances to the Philippine Treasury secured by Government bonds to supply funds for government projects) has reached the highest point for the year, showing net increase of P 13,000,000. The Exchange Control Board has issued several noti fications and memoranda during the past month which have enabled importers and the banks to prepare applica tions for exchange and reports to the Control authorities more satisfactorily. The banks have been given general licenses to sell foreign exchange for travel and for education purposes provided certain conditions are fulfilled. This should help to relieve the congestion at the Exchange Control leaving it free to act on the doubtful cases. Manila Market.—Modification of the Central Bank’s gold policy caused great strength following the holidays, but other factors have since appeared and have caused the market to give up almost all its gains. At the moment inflationary and deflationary forces appear pretty much in balance, and most investors have retired to the sidelines until they can assess the consequences to mining companies of recent changes in the country’s financial and economic policies. In the Commercial and Industrial Section of the market, Sugar shares have been in excellent demand at advancing prices. Bank shares have also been firm. 1949-50 Range High Low MINING SHARES High Low Close Change Total Salt 94 P 32 12 Oil 3 5 68 07 75 : 0052 30 ; 2 M.S.E. Mining Share Average Acoje Mining Company.... Antamok Goldfields Mining Co............................................ Atok-Big Wedge Mining Co.. Baguio Gold Mining Co........ Balatoc Mining Company.. 93 P 3 55 82 •' F 16 29 17 3 Up 1.42 85,( 016 008 038 025 28 Stock and Commodity Markets By A. C. Hall A. C. Hall Company December 24, 1949, to January 27, 1950 NEW York Stocks.—For the seventh consecutive month, the market moved forward into new high ground, but during the early part of January it ap peared to have encountered a formidable barrier around the 202 mark of the Dow Jones Industrial Average. At this level, at the present time, there appears more stock for sale than, can be absorbed. It seems likely, in fact, that, before the hurdle can be cleared, technical strength will have to be gained by the usual process of a tempo rary move in the opposite direction. Over the period of this review, the range of the Dow Jones daily closing ave rages was as follows: Dec. 23 High Low Jan. 27 Change Industrials.................. 198.88 201.98 196.81 199.08 Up .20 Rails............................. 51.55 55.80 51.23 54.82 Up 3.27 Utilities........................ 41.02 41.87 40.86 41.87 Up .85 Of the various market groups, rails improved, motors and chemicals were mixed, steels and coppers firmer, while oils were heavy. As has occurred in recent months, there was pronounced strength in some individual issues, in particular American Can which has advanced 15 points on talk of a split-up. Industrial activity on the whole is likely to continue at a high rate during the first half of the year, but pros pects for the remainder of 1950 are less clear at this stage. Until more is known about the latter, it is unlikely that the market can make further progress on the upside. Commodities.—Wheat and flour buyers are following a hand-to-mouth policy, but there has been no important increase in offerings: Chicago March Wheat closed at $2.17-1/8, compared to $2.18-1/2 last month. In Corn, the loan is still the most important factor; Chicago March Corn closed at $1.28-7/8, against $1.31-7/8 last month. Good domestic and export demand continues in Cotton, with New York March Cotton closing at 31.30, compared to 30.66 in December. In Sugar, the United States domestic quota is realistic and the Cuban production-peak is at hand, but aggressive world demand is a firming factor; New York March #6 Contract advanced from 5.16 to 5.22 during the month. 70 02 02 043 015 11 04 Benguet Consolidated MinCoco Grove, Inc..................... Consolidated Mines, Inc.... Itogon Mining Company... I.X.L. Mining Company... Lepanto Consolidated MinMindanao Mother Lode Masbate Consolidated Min ing .......................................... Misamis Chromite, Inc........ Paracale Gumaus Cons........ San Mauricio Mining Co... . Surigao Consolidated Mining Co............................................ Suyoc Consolidated Mining Co........................................... United Paracale Mining Co.. 1949-50 Range High Low 200 750 00 185 00 510 220 4 00 034 01 09 07 00 00 00 145 135 00 00 100 00 95 00 70 00 70 00 50 00 25 00 23 00 64 70 41 56 21 08 29 025 10 15 08 18 025 09 COMMERCIAL SHARES 30 00 00 2 75 00 95 82 165 28 00 90 00 75 9 024 55 04 50 0041 Up Up Off Up Up Up Up Off Up Up .65 .002 .002 .015 .02 21,50 10,00 3,930,00 232,00 240,00 60 60 02a 15 08 14b 025 09 Up .03 266, 20; Up .04 Up Up .005 .02 20, ( 130,( Bank of the Philippine Is..................................... P87 China Banking Corp... 189 Central Azucarera de Bais................................ Central Azucarera de la Cariota.......................... Central Azucarera del Pilar............................... Central Azucarera de Sara Ajuy.................... Central Azucarera de Tarlac............................ Filipinas Cia. de SeguManila Broadcasting Co. Manila Wine Merchants, Inc.................................. Metropolitan Insurance Co................................... Pampanga Bus Company High Low Close Change Total 750 220 135 00 135.00 135.00 Up P15. 95 00 70 00 00 2 00 85.00 70.00 .75 2.00 85.00 Up P 2. 23.50b .75 Off 2.10b 27 20 .17 22, t 70 28,00 40 ____________ _____ _ 065 Philippine Oil Develop ment Co........................ Philippine Racing Club. San Miguel Brewery, Inc.................................. Williams Equipment Co. Pfd.................................. Williams Equipment Co. 00 7 25 1 1075 22 .0025 .02 1,007,00 15,20 38 00 29.00 29.00 Off 3.50 27,85 80 00 80.00 50 8.00 80.00 8.50 Off .50 95 8. Over-the-counter business reported during the month included Bacolod Murcia, 5,00 shares at P17; Manila Jockey Club, 1,100 shares at Pl.65; Philippine Education Co. 120 shares at P100; Philippine Iron Mines, 100 shares at P35; San Miguel Brewery 83 preferred, 255 shares at P100; and Victorias Milling Co., 750 shares between P250 and P270 Credit By W. J, Nichols Treasurer, General Electric (P.I.) Inc. A great many importers handle merchandise on an indent basis in which the time of delivery extends over several months. Due to time limitations which the Central Bank of the Philippines has imposed on the opening of letters of credit, such indentors are at present unable to insure that the goods they import will be paid for when they arrive. As a result, some importing firms 67

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