American stock and commodity markets

Title

Creator

Ewing, Roy

Language

English

Source

The American Chamber of Commerce Journal Volume XXIV (Issue No.7) July 1948

Year

1948

Rights

In Copyright - Educational Use Permitted

Fulltext

Manila Stock Market May 15 to June 17, 1948 By A. C. Hall A. C. Hall Company MINING SHARES AN easier trend developed until the end of May, by which time prices had again receded into the area of the year’s lows. Activity tended to dry up as the decline proceeded, thereby indicating lack of selling pres sure. ‘ As on previous occasions, the market again has dis played ability to rebound from this level, and the rally since early June has recovered earlier losses. Individual issues were mixed. Atok-Big Wedge and Mindanao Mother Lode were the principal losers on the: decline, with the latter issue off as much as 21 points at one time under some distressed liquidation in an empty market. Lepanto Consolidated has been independently strong throughout the period, while Acoje and Surigao have also been better than average performers. Examination of the price-pattern around the year’s lows, shows every indication that the secondary decline which set in shortly after the New Year has terminated, and the market is now in the process of resuming the major uptrend. The changed outlook reflects an improving financia foundation, also discounts better news in the months to come from the mining companies. In addition to the foregoing, unlisted mining issues traded as follows: Antipolo Mining, small business at 18 and 20 centavos; Balatoc, 4,000 shares at P3.50; Benguet Consolidated, 16,000 shares from P4.15 to P3.80; Misamis Chromite, 166,000 shares from 22 to 27 centavos. High Low Close Change Total Sales Manila Stock Exchange Average........................ 104 60 94 60 103 47 Off- .53 Acoje Mining Co.. P .355 P 32 .35 Up .03 350,000 Antamok Goldfields.. . .025 025 ,025a Unchanged 100,000 Atok-Big Wedge Min ing Co.......................... .79 .70 .72 Off .08 133,250 Baguio Gold Mining Co................................ .04 .04 04b 145,000 Batong Buhay Gold Mines, Inc.................. .006 0058 0058 Off .0002 1,100,000 Coco Grove, Inc.......... .023 023 .023 — 50,000 Consolidated Mines, Inc................................. .0135 .0125 .013 Unchanged 7,590,000 Itogon Mining Co.. . .07 .07 07 Up .005 50,000 I.X.L. Mining Co... .0725 06 07a — 115,000 Lepanto Consolidated. .79 65 79 Up .10 599,000 Masbate Consolidated. .04 .04 04 Unchanged 55,000 Mindanao Mother Lode Mines............... .90 .69 .81 Off .08 418,000 Paracale Gumaus Cons............................. .10 .10 10b — 55,000 Suyoc Consolidated Mining Co............. 03 .03 03 — 20,000 San Mauricio Mining Co.................................. .185 .175 .185 Up .01 135,500 Surigao Consolidated . .36 .30 .36 Up 04 475,000 United Paracale Min ing Co.......................... .08 .0775 .0775 Off .0025 60,000 COMMERCIAL AND INDUSTRIAL The feature of this section has been renewed activity in Philippine Oil Development shares which have responded to reports that the Company will be granted additional leases by the Government. San Miguel advanced on re ports of higher earnings this year as compared to last. High Low Close Bank of the Philippine Islands......................... P56.00 P56.00 P56 00 Central Azucarera de Bais...............................S00.00 500.00 500.00 Central Azucarera de la Cariota....................105 00 105 00 105 00 China Banking Cor poration....................... 173 00 173.00 170.00b Marsman and Co. Pfd..........................................40 .40 .40 Peoples Bank and Trust Co..................... 55 00 55.00 55 00 Philippine Oil Dev elopment Co........................245 .175 .23 Philippine Racing Club 1 30 1 20 1.20 San Miguel Brewery.. . 74 00 66 00 74.00 Victorias Milling Co., Inc..................................120 00 120 00 120.00 Williams Equipment Co. Pfd....................... — — 95.00a Williams Equipment Co. Com........................ 9.50 -9.50 9.50 Change Total Sales 1,600 Off P4.00 51 Off 35.00 4 Unchanged 65 — 20 — 10,000 — 148 Up .045 1,703,235 Off .10 31,500 Up 4.00 3,377 Unchanged 334 Off .50 In addition to the foregoing, unlisted Commercials were traded as follows: Jai Alai, 1,900 shares at P22, and Manila Jockey Club, 11,300 shares at P2.26. American Stock and Commodity Markets May 27 to June 26, 1948 By Roy Ewing Swan, Culbertson & Fritz FOR the past month, the New York stock market has been firm, but lacking the aggressive strength it demonstrated in May. The period under review opened with the Dow Jones Industrial Average at 190.97 and advanced steadily to a new high since August, 1946, of 193.16 on June 15. Moderate declines followed, send ing the senior average back to 190.00 at present writing. The Rail Average, on the other hand, which lagged in late May and early June, broke into new high ground on June 23 and is now 62.82. Oils continued to be an outstanding feature of the market, and again recorded all time highs, reflecting addi tional highly favorable reports as, for example, Standard Oil of New Jersey’s indicated earnings for this year of $16 a share. Other industrials which were favored . in cluded motors, chemicals, and aircrafts. Continued satis factory earnings and dividend reports aided buying senti ment, and practically all business indices supported the optimism of the market. Overall profits exceeded last year records, United States employment now at record levels was still on the increase, retail sales are considerably up from last year, and many industries’ backlogs were build ing up faster than they could produce. A factor in the recent weakness has been the collapse of negotiations be tween management and labor in the soft-coal dispute and the possibility of generally worsening labor relations. According to the Dow Theory, the present decline is neither surprising nor disturbing, and will probably turn out to be only a normal secondary correction. The current bull move started in the middle of March with the Industrial Average at approximately 165 and the Rails around 49. A secondary reaction is to be expected after a move of this size and duration, and some traders are of the opinion that buying should be deferred until a correc tion occurs. At present writing, it appears that these will be rewarded for their patience by a buying-spot pos sibly around the 180-185 level. 248 A 11 commodities moved in a narrow range, nothing •“■spectacular either way. In general, all were adversely affected by the House of Representatives’ cut of the Eu ropean Recovery Program funds. New York spot cotton sold at a high for the period of 39.13 on June 2, but closed at 37.28. Favorable crop news and the disappointing export demand were somewhat offset by the prospects of loans to Japan to buy cotton. Chicago wheat (July) declined from a high of 235-3 4 on May 28 to a low of 227-1/4 on June 14, and then rallied to close at 230-3 8. Buying by various government agehcies for export sup plies, offset predictions of another bumper wheat crop. Dryness in the maize belt made corn somewhat stronger; the low for July was on May 27 at 214-1/8, the high on June 22 at 223-1/4. Credit By W. J. Nichols Treasurer, General Electric (P.I.) Inc. THE trend of increasing capital lockup in accounts receivable, reported by wholesaling firms during the month of June, was due in part to continued demands from retailers for more favorable credit terms. The situation does not appear to be disturbing and is con sidered by some credit managers as merely a sign of return to normal conditions. However, business men engaged in credit and collection work are continuing to examine carefully all delinquent accounts. Several instances were reported in which further shipments to customers have been held up for non-payment of overdue bills. One problem which continues to occupy the attention of credit managers to some extent is the settlement of pre war debts. The liquidation of these old accounts has been delayed by the debt moratorium and by the loss of records and accounts during the Japanese occupation. Several firms report that although their larger accounts with pre? war customers have been settled by mutual agreement and compromise, a considerable number of receivables on their books at the outbreak of the war still remain open. It is quite likely that the majority of these debts will never be fully paid up. Demand for installment plan financing continues to increase. Although restricted at first largely to the metro politan area of Manila, this form of financing is gradually spreading throughout the provinces. It is believed that with larger supplies of merchandise on hand and more active competition, wholesalers are finding it necessary to accept installment contracts. Note: January. February March.. April. .. May.... June.... July. • • • August.... September. October... November. December. Totai____ COMPARATIVE STATEMENT OF REAL ESTATE SALES IN MANILA A large percentage of 1945 sales and a diminishing percentage of 1946 sales, represent Japanese Occupation transactions not recorded until after liberation. Prepared by the Bureau of the Census and Statistics 1940 1941 1945 1946 1947 1948 P 6,004,145 P 962,970 P 7,943,605 P 4,385,011 P 6,030,012 P 3,644,734 918,873 779,783 1,337,830 2,267,151 7,217,317 3,879,633 1,415,246 1,532,104 (?) 2,622,190 7,166,866 4,243,719 883,207 988,380 213,262 1,916,293 8,611,076 5,021,023 403,866 1,129,736 962,008 3,684,937 4,618,181 3,129,799 542,187 598,431 1,212,780 3,637,956 3,988,560 1,324,861 559,742 1,123,565 4,974,862 4,097,183 1,905,828 1,239,414 699,740 4,438,510 5,627,572 1,141,114 815,112 1,870,670 4,698,896 7.437,213 993,103 1,182,678 2,096,893 5,545,800 6,083,486 938,416 858,235 2,555,472 3,340,382 4,177,054 1,504,004 (?) 2,874,408 4,025,926 3,205,584 Pl 7,974,844 P 10,647,285 P22.890.133 P45,537,914 P68.260.104 P19,918.908 Electric Power Production {Manila Electric Company System) By J. F Cotton Treasurer, Manila Electric Company 1941 Average — 15,316,000 KWH 1948 1947 January.................................... 27,301,000 17,543,000 K February.................................. 26,021,000 17,503,000 I March....................................... 26,951,000 20,140,000 L April............................ ......... 26,871,000 19,601,000 O May........................................... 28,294,000 ♦ 19,241,000 W June........................................... 28,950,000 ♦♦ 17,898,000 A July....................................................................................... 22,593,000 T August................................................................................. 23,358,000 T September......................................... 23,122,000 October................................................................................ 24,755,000 H November............................................................................ 24,502,000 O December............................................................................ 25,725,000 U ...................... R ' Total...................................................................... 255,981,000- S ** Partially estimated A continued sharp increase in output was recorded in June despite it being 30-day month. The daily output record set in May became the average for June. The increase in June over May was 656,000 KWH (2%), and the increase over June, 1947, was 11,052,000 KWH (61.7%). It should be noted that output is now nearly double that of 1941 (189%), and nearly triple the output in June, 1946. Real Estate By C. M. Hoskins (Of C. M. Hoskins & Company, Realtors) THE months of May and June showed considerable real estate activity, several large properties having chang ed hands, with the usual volume of smaller units. The war-damaged University Club Building on Dewey Boulevard and San Luis was sold for P450.000 to a Filipino investor who has already begun rehabilitation of the prop erty. The historic Botica Boie property on the Escolta was sold to J. M. Tuason & Company for Pl,020,000. It is reported that the sellers will use the proceeds to build on their 2,000-meter lot across the street, meanwhile con tinuing to occupy the old property. J. M. Tuason 8b Company also bought for P640.000 from the Pnilippine Alien Property Ad ministration the old Mori Bicycle store site on Rizal Avenue and Soler Slyeet. The large Geo. H. Fairchild property in Pasay was sold to a Negros planter, Don Benjamin Jalandoni, at a re ported P530,000. 249

pages

248-249

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