American stock and commodity market

Title

Creator

Ewing, Roy

Language

English

Source

The American Chamber of Commerce Journal Volume XXIV (Issue No. 8) August 1948

Year

1948

Rights

In Copyright - Educational Use Permitted

Fulltext

Debits to Individual Accounts (monthly averages) (000 omitted) *June, 1948 “May, 1948 June, 1947 P113.944 P117.993 P96.963 Currency in Circulation (monthly averages) (Circulation Statement issued by Treasurer of the Philippines) June 30, 1948 May 31, 1948 June 30, 1947 P810,780,079 P798.775.645 P716,447,804 ’Compiled from reports to June 19 only, to be corrected in next issue. ’’Corrected figures. The September contract for New York Sugar closed the period at 5.21, as compared to 5.18 a month ago. Ad vices from New York dated July 16 reported production from Cuba at somewhat over 6,655,000 short tons, with one mill still grinding. Pressure on the Agriculture De partment to increase the United States sugar quota, caused some trade members to adopt a waiting attitude pending further action in this direction. American Stock and Commodity Markets June 27 to July 27, 1948 By Roy Ewing Swan, Culbertson Fritz THE feature of the New York stock market during the past month was the sharp break between July 14 and 19 when the Industrial Average declined from 190.66 to 181.20. The crisis in Berlin and the resulting threat of war was undoubtedly the main influence. Previous to this break the market had acted well, especially the Rails, which Average went up to 64.95 on July 14, a new high since 1946. Since the 19th, moderate rallies have brought the Industrial Average back to 184.17 at present writing. In addition to the international situation, there were other bearish market influences. The inflation spiral was boosted by Big Steel’s wage increases, which followed similar previous hikes in the motor, railroad, coal mining, and other industries, with resulting rises in prices; there was nervousness over the special session of Congress, and the effect to some industries of the bumper crops (see be low). On the bullish side were continued reports from numerous companies of record high earnings and dividendsThe United States employment figure was at a record alltime high, as Were several other business indices. Con sumer spending was on the increase and acting as a cush ion. As yet to have its effect, was the Marshall Plan and the defense spending, which is still in the allocation stage. From the 1948 lows in February and March, to the highs in June and July, the Industrial Average rallied 27.77 points, the Rails 16.82. The recent break erased 43% and 32% of these respectively. According to the Dow Theory, a normal secondary reaction retraces from one-third to twothirds of the previous move, so the recent break is well within these limits. As pointed out in this column last month, a break in the Average to between the 180 and 185 levels would, according to the Theory, be a buying spot, and we continue to hold to this opinion. As confirmed by the Averages in May, the primary trend is bullish. /Commodity prices were mixed but generally easy. New York spot Cotton is 33.90 today as compared to 37.26 on June 28, the gradual drifting toward loan level being a result of good to excellent crop news. Export pros pects were reported a little brighter, but European Co operative Administration business was slow in developing. July Wheat in Chicago declined from 232-1/4 on July 1 to 225-1/4 on July 16, but rallied sharply to 236-1/2 on July 23, the expiry date for July contracts. The Depart ment of Agriculture’s latest estimate predicted the second biggest harvest in history. Chief support was due to known export needs and indications that large amounts will be impounded under the loan. July Corn also declined from a high of 222-3/8 on July 1 to 199 on July 10; it rallied to 212 on July 23. The Government’s estimate was for an all-time record crop, 2% above 1946. A strong live stock market with both cattle and hogs touching all-time highs at Chicago, was a favorable influence. Manila Stock Market June 18 to July 15, 1948 By A. C. Hall A. C. Hall & Company MINING SHARES . MINING shares have drifted steadily downwards during the past month under mild but persistent pres sure. The principal bearish factors were the Court of Industrial Relations decision in the Consolidated Mines case, issued around the middle of June, and, latterly, the worsening Berlin situation. In regard to the former, there is apprehension that the decision may set a pattern for the entire mining in dustry. As some mines are already staggering under high costs and war losses, any additional burden at this time would be unfortunate. The case in question was submitted to the Court in March, 1947, and remained pending for a period of about 15 months. The Union received a substantial wage in crease which was made retroactive to May, 1947. In ad dition, the Company was ordered to pay a wage bonus of 50% on all work performed between sunset and sunrise. The estimated cost of this decision is approximately half a million pesos. The Company has filed a petition for reconsideration. At today’s closing'level, the market average is once again in the area of the year’s lows. In view of the worsen ing international situation, it appears that some further decline is likely. High Low Close Change Total Sales Manila Stock Exchange Average. . 102 87 93 51 194 41 Off 9 06 Acoje Mining Com355 P .34 P 32 Off .03 119,000 Antamok Gold-' fields...................... .02 02 02 Off 005 149,778 Atok-Big Wedge Mining Co........... .72 .66 .67 Off 05 217,500 Baguio Gold Min ing Co................... 044 .044 .044 Up .004 20,000 Batong Buhay Gold Mines.................... .0058 0054 .0054 Off .0004 1,070,000 Coco Grove, Inc- 023 023 023 Unchanged 20,000 Consolidated Min es, Inc................... Itogon Mining Com pany...................... .013 0115 .0115 Off 0015 6,720,000 08 075 .08 Off 01 200,000 I. X. L. Mining ¥ Company............. .0775 0775 0775 Up 0075 120,000 Lepanto Consoli dated .79 .75 .76 Off 03 250,000 Masbate Consoli dated ..................... 042 04 .04 Unchanged 70,000 Mindanao Mother Lode Mines......... 80 .65 .67 Off 15 312,000 Misamis Chromite Co., Inc................ 275 .25 .275 Off 005 210,000 Suyoc Consolidated 035 032 032 Up .002 155,000 San Mauricio Min ing Co................... .25 195 21 Up .025 151,000 Surigao Consoli dated .37 .34 32 Off .04 309,433 United Paracale Mining Co.......... .0825 .0775 .0775 Unchanged 85,000 2 88

pages

288

Media