THE CHINA MAIL,
FRIDAY, JULY 8, 1955.
TRADE and COMMERCE SECTION
SHARE PRICES CLIMB
HIGHER
NEW YORK Scare Money' And Scarce
STOCK
MARKET
New York, July 7. Profit-taking on the heels of yesterday's stock split Speculation gave the marketi
thorough one of its most shakeouts in five years, knocking priced down a point! to more than 11 points.
Industrial shares Pase 1.90 points yesterday in their widest average gain since Sept. 3. 1939.
puitda
They
18. clumped today their sharpest drop since the 9.72 fall on March 14 which, in turn, was the heaviest loss' since June 26, 1950 following! The Korean outbreak.
Generat Motors, up 14% points yesterday following its three-for-one stock split pro- more than 2 points posal, lost today and Du Pont, GM's big- gest shareholder, slumped 11 point to $235.
per
fraded the
the basis of tolal suus market was lower with 633 declines yesterday Sgainst 361 advances. Today
Scrip Puts
Market Up
BOOM LIKELY TO CONTINUE
By A Special Correspondent
"Scare money continued to pour in from Southeast Asia this week particularly Indo-China, scrip became scarce and share prices on the Hongkong Stock Exchange went higher than ever.
Last week nine shares were at their highest levels of the year. This week several stocks were at their best prices for more than 18 months and in Ice House Street the general belief is the boom will continue.
k
TODAY'S
SHARE PRICES
(From Our Correspondent)
Businėas done on the Hong- Stock Exchange this morning amounted to $1,045,-
morning's transactions:
568.60. Noon quotations and the
SHARES BUYERS SELLERS SALES BANKS
1 Bank.. 1780 17 East Asia... INSURANCE
Union Banks put on $50 this week to $1,790 while Unions, $25 better at $1.000 are now within $-10 of their all-time high.
World Cotton
Markets
New York, July 7. Strength in the new con. tract featured an irregular and quiet cotten, market twizy.
3
In
**
195
Lombard.... DOCKS, ETC.
Whart Dock Provident
Wherlock
34
75 761%
ETC.
HK Hotel
60 F
| 15.30 15.30 $12 » 15:30
US FUNDS FOR BRITAIN
The
Washington, July 7.
Internationa Co-
to
operation Administration
(Foreign Ald) announced that it has allocated to Great Britain $8,200,000 buy raw ection, $3,245,000 for the purchase of $4.000.000 $1,000,000
for prunes
ter dried peaches, apples, pears,
apricots or mixed dried! fruits
and $2,250,000 for бесал transportation. United Press,
LONDON STOCK
MARKET
London, July 1. Demand for stocks boomed along today ending prices on the London Exchange up any- where tram a few pence to a shilling or more.
8.59 8.90 8500 optimism
2000
about
Good earnings reports and the coming. 500 0.30ummit" talks at Geneva were 8000 4 8.35 key factors behind the wave of 1740 17:30 1500 17:30 buying which has flooded the
1000 17.20 market this week.
500
17,20 Blue chip and industrials
showed
numerus gains of a shilliṛ er more. Associated Electric ran up 25
714 72 400 72 13.20 18.00 2271 8000 2.34
12.000 2.30 24.24.20 2150 15 24.33
152 200
IK Land Humphrey's Really UTILITIES
Tram Star Ferry 150
-
Yati Ferry 120 C. Light (0) 21.00
Os were strong kd by Royal Dutch, British Petroleum. Bur- mah Oll and Shell. Gains in this
to ranged £. Gold 22.30 group
shards were neglected. but 1000 21.90 coppers Armed.
P&O B.I. E&A
COMPANIES
EAS
· PENINSULAR & ORIENTAL S.N. CO.
PASSENGER/FREIGHT SERVICE
Outwards
"CARTHAGE"
*CORFU"
"CANTON"
"CARTILAGE"
Leaves London' Duo Rongkong Salted
23th Jule
Mih July
17th August
and August
19th
September
14th September 17th October
Tin Southampton, Port Said, Aden, Bombay, Colombo,
Homewards "CARTHAGE"
"CORFU
"CANTON"
"CARTHAGE"
Penang & Singapora
11
Leaves Hongkong Due London
th" July
* August
3rd September
#ist October
29th August
27th September
54th October
21st November
Via Singapore, Penang, Colombo. Bombay, Adem.
Port Said & London
FREIGHT SERVICE
"SINGAPORETM due rd July from U.K,
"SOMALI“
*
Aden.
loads 24th July –ter-Kobe & Yokohama Loads 27/23th July for B'pore. P. Swetted-
ham. Peran Port Sak, Genoa Marselles, Havre, Lon- don, Antwerp, Rotter- dam & Hamburg
With liberty to call at Baiwan before or after Straits Fort and at Bombay if inducement offara Tanks available for carriage of Oil in Bulk. Space for refrigerated cargo. Limited Passenger accommodatian
BRITISH INDIA S.N. CO., LTD.
“SIRDHANA” que'#2nd July from Jayas
Naily Card July
due Mih July
salis 27th July
"SANGOLA"
range dowa
"FULTALA"
British Government bonds 'see- lawed within a narrow generally finished
500 21.00
C. Lght (N) 17.33
100 175 and
2000
500
£16.
Electric
Telephone
3
INDUSTRIALS
Coment STORES, ETC1;
Dairy
Watson
17.30 17.40 500 +212
1300 g 25
33 1700 733
23.20
L. Crawford 30 corrONS Textiles
5.80 Nanyang MISCELLANEOUS
Yangisne 6907.10 Allied
There was slight profit-taking not surprise brokers, for instance on Tuesday which caused prices it Lights came good with a tractionally but the bigger dividend and/or un Issue le case market
demonstrated its re- next year. silience and its remarkable This week, Trams put on 30 underlying strength by making cents to $24.30, Yaumatis are LAND,
$121 but have been before the steady at quick recovery end of the afternoon call
higher at $122, Ching Lights are And from then on the market up 10 cents to $22.10, Electrics up 75 cents to $422, Telephones never looked back. Other so-called Split, candi-
Rubber shares sprang into the up 25 cents to $35.
this dates, bought, heavily yesterday
imelight
week when
"In the Industriai section, in the enthusiasm generated by
have been well sup rubber rates Cements Singapore raw General Motors nction. were The declining months came moved up 1272 cents to 1284 ported and show a rise of a si hardest hit in the selling to- up from their lows near the Straits
ecise a 16.
Since the on the week to $3314 while in
the Stores day.
section Forms at close and the list finished 1 to end el April rubber has risen Aluminium, 15 points higher. The market by a lot of 38 cents a 1b. Allied Chemical.
$23.30
50 arc
cents botter, Bethlehem Steel Kennecou Cop-opened"
There were some positively Watsons are 40 cents better o
Lanc Oricans futures fantastic turnovers in the rubber a buyers quote of $14.30. International Paper, Star- lower points higher to 2 points dard Oil (NJ). Reynolds Metals, finished 2 lower to 1 higher. sertion this werk:
total of Crawfords cx ย
$3 dividend said which is yesterday, US Gypeum-all selling above!. Covering by shorts in the 443.000 Amalgamateds and 66,- at 3302 100 and thus fodder for it now
October
and December | 000
hands, equivalent to a rise of $1.25 on Trusts changed rumours lost up to 6 puints, contracts boosted prices around Amalgamateds rose ten coils to the week. -Monsanto Chemical alumped) 70 cents a bule.
MID-SUMMER TORPOR a simila and Trusts $2.225
Finance. Trading in the other contracts
following arly 10 prints.
Yangtze amount to $31.
Wherlock's good gains, moved was routine with mest traders On
SHORTAGE OF SCRIP awaiting tomorrow's Dereage Daily
averaged up from $6.95 to $7.10 but were business
Allieds, report. These
Tuesday, contracts traded about $2.4 million during the $7.30 within a narrow range most of four-day week (last Firday was quoted buyers $5.30 last Thurs- without the special buying the day,
a Bank holiday) which was just day moved up to $5.60 earlier which overshadowed the general » There was some evening-up slightly
bul were down Iss than the record in the week market avlivity
the in nearby July yesterday,
which expires turnovers of the previous week. slightly to $5.55 yesterday. zatio was more pronounc
next Wednesday. No July Brokers, as I said, ascribe the Textiles and Nanyangs "are deelines - 535
intens! 215 transferable notices were issued activity and buoyancy to the static and seem to be still in a
at New York, but it is believed fact
torpor. One that money has been mid-summer why. some circles that a substantial "pouring in" (their word, not wonders
Cotton textile
are from Southeast Asia. exports
011 the up number of these notices will be mine)
sued soon.
They also say that share scrip and up according to the latest The 1954 crop loan reposses- lis getting very short,
15
figures. sions in the week ended July 1 This is understandable. A let In the wharves section, "Hong
to amounted
13,894 bales, of good solid gilt-edged and keng and Kowloon Wharves are making a total so far of 588,857 "Blue Chip Utility scrip is held about steady but China Pro- and leaving 1,719,139 still under by local institutions an invest-
vidents show a meteoric rise loan, the "Commodity Credit ment-just what proportion up fro
from $33.90 to a top of $15.50 Corp, reported.
I couldn't 15
even guess and yesterday. They were $14.60
last week Trading volumes and
open much more has been bought up interests in the Exchange today in
recent months by overseas thought these shares were worth investors who are, naturally, not buying. In fact, they're one of Open interes going to part with it.
the best
on the market at this For years, insecurity
Their has price,
prospects 212 dogged
Them in Southeast Asia. excellent and apparently within
them Many
have made the company there are hopes of fabulous fortunes in their time a record year. But I think and have lost them. Since the jonly fair to point out the
that yester- activity ever end of World War II and parti-day's
11,500 2103200 ter cularly, during the Korean War changed hands and the price
they've
re-established thern-
cm-was 90 cents up at one stage-
is was largely selves. Now their wealth
due to a market by civil 34.95 threatened either by war,
operation and that next week's 34.02-03 political crises, economic chaos trading should show
□ truer And in level. crippling taxes. countries where restrictions have been imposed, they're getting their money out in millions while the going is 30 cents better at $17.30. 33915
good.
Hongkong's good fortune,
FIGURES DECEPTIVE
advancés,
Losses of a point or mure were numerous in all groups.
Rails fell 2.35 points on average.
Utilities for the most part ere of fractions,
היר
With a 35.000 share opening, General Motors again topped the active list. Turnover totalled 102.500
shares, compared with yesterday's 167,100...
CLOSING PRICES
tvere: Month
Volume
186,100 496,000
Allied Chemicals
120
All Chulm1904_
735% July
Ain. Mach. & dry
2293, Oct.
20,500 17,400
American Metal
655%
Doc,
21,500
€74.6000
American Senelung
51 Mar.
7.400
387.100
Am. Sugar Ref.
78
May
American Tel & Tel
July
American Tab. "13"
84
Oct
Anaconda Cobber
Mu
Dec.
Anne Steeri
Acmou:
41% Tou 1414
14.100 11,500 2,600
95.700 NEW
299,000 173,700 72,200
7,300
YORK
Baltimore O
47
as follows:
Benguet Cons.....
Spot
Bethlehem Stret
July
Canadian Pactic R.
344
CH (4. 1.) e
1555
Baldwin-1ma-tiam,
Bendix Aviation Catp.
Cat. Tractor
Celanese Corp.
Chryster Moles Colgate-Palisahve Co
Consolidated Edison
Continental Steri
Cera Products
Crown Zell-plant Culan Amde. Suzus Crity Writ o
Diamond ABOUT
Dow Chemical
14 Prices of futures closed today
40
Dictat December
March
May July
Celober
December
|
34.37
01
34 36
34.21
34.
*3.01
33.53
NEW ORLEANS Prices of futures closed today as follows:
December
33.90
33.95
2434
34.39
24.2
24.97
33.49
33.94
33.93
There
one
25 an
currency
וי
point worth
as
2
500 Gr 30%
724 7.80 3000 in
51 5.85 1000 5.96 500 v 5.55
Foreign bands moved higher en buying generated by the Geneva tables. Some West Ger- man bacids soared as much as £4 Japanese lines fried. United Press.
London Foreign
Exchange
London,, July 7. Foreign exchange rates closed today as follows--
Exchange Rates New York
Mezirea) Brussels Business was done in the local Copenhagen unofficial exchange market 14. Paris
Stockholm morning at the following rates:-
5.79 West Larks US dollar per $11 Sterling notes (per £11..... JABC | Zurich
ndonesian
I rupiah (p 100)
Slam uicals er 100) Singapore (Supit)
BIG BILL FAID Lands are up about 50 cents on the week, to $72. Hotels are
"YU,
remember all that speculation if the market
few weeks ago the Central Development syndi
Indo-China plastres (per 100)
2.7832-2.761/16 221-22V/16 13957-13037
13.341-19.3 9754-975:4
14.437-14.43%,
11.0772-11.60 12.1776-12.174 Others were unchanged, The New York foresan, ex- Tchange rates were unavailable.
-United Press.
12.03 #3.70
Sterling Rumours Cost Bank
Some
Dollars
London, July 7.
The unfounded rumours about sterling had
that the effect of bringing spot sterling uncomfortably cate which bought the Hong near its lower limit of $2.78. This cost the Bank ngentioning,
however:
kong and Shanghai Hotel site in of England some dollars, though probably not
not be able might not, "Comment" in the China Mail Fodder Street painted out this week the actual to pay up its $3.3 million instal- many, in conducting an elastic defence.
Well, all's turnover figures for the day are ment on June 30? apt to be deceptive.
there is a big scramble for shares And there
at the moment but a lot of the American business this week has been the middling, in pence per lh. were result of what brokers describe
Spot Judy
Cetober
Dupont de Nemour
Eastman Kodak
26
March
Erie Railroad
233
May
Family Finance dorp.
243%
July
October
General Electric
December
General Fonds
21
Ceneral Motors
12523
Ger. Pub. U.
500f
LIVERPOOL Future, closings,
Gillette Safety Razor
* Glidden Co......
as follows:
Goodrich (B. F.) Co.
60%
Goctiyear Tire
61
July/Aug.
Heyden Chemical
2013
Oct/Nov.
Homatake Miring · Cà,
30
Dec/JATL
Ingersoll-Rand
54%
[4] Mar/Apr/
Inland Steel Co.
7616 May/June
Int'l Business Machines
424**
Int'l Harvester
20
International Nickel
:21
SAO PAULO Future closings, in cruzeiros per kilo were as follows:
International Paper
110
July
Int'l Tel & Tel
Oct,
chr-Manville Co.
Dec.
Kansas C. Power & Light
403%
**Mar.
Kennecolt Copper
Lockheed Aircraft
May
4432
Loews Incerp.
221
Lone Star Cement Co.
03.
Lowenstein & Sons.
2474
Mesabi Iron Corp.
54
801
54
43
United Press.
Montgomery Ward Motorola Inc. .... National Cash Reg. National Dairy Prod. National. Distillera National Lead New York Central Olla Mathieson
Otis Elevators
Owen-nofs Glass
Paclite Gas &'Elec.
Pan American Airways
Paramount Pictures
* Parke Davis Co.
Pena, Salt Co.
Philip MouÍM,
Philips Petroleum
Punficker Industries
Pure Oil.
Radio Corporation
Aro Motors
Republie Stoel
Shell Out Co.
Saint Reg. Paper
Bociany Vacuum
Southern Hindhway (Com
Standard Brands
Standard Oil of Cal.
Sinclair 011
Bouth Porto Rico Sugar
לנו
A more serious effect is that since June 10, the Certainly well. The money has been paid day of the OEEC meeting and the start of the rumours, the forward sterling exchange rates have lost touch with the lower limit of $2.78 on spot sterling. Instead they have moved out to a different lower limit, the one set by the difference between London and New York short-money When, scared by the rumours, American and other foreigners try to borrow sterling instead of buying it, they are made to pay a high interest rate and the forward, exchange rates adjust themselves thereto.
is a fair breathing | space of about 18 months before the final instalment of about $6.6 million is due. No
wonder as. "professional operations." they're up. 37.59
That
The Secretary of the company is, jebbers acting on their 30.50-17
Mr A. Sommertell goes on home 30.16-17 own eccunt. 30.02-04
tends to hide the real leave on Monday, This 23.47
So that's extent of the serip shortage.
the market this During the week, pretically week. The general belief is that every share shows a rise of some prices will continue ris kind as other. The favourites though perhaps more gradually 54.15
Banks and Unionis," "Blue Chip" any talk of a slump and I think 35.95 34.40 Utilities
and, Di sourse, their prediction is amply borne 34,90 Wheelocks,
out by the present economic In the United States, the
word
and about situction
conditions average price of 15/18 middling wheelocks:
22.00
were again big "gilis" like next week. Broker's won't hear
A
two ***
in
I quoted a broker Southeast Asia which indicate a
at ten designated spot markets last week as saying they would continued demand for our stocks was. 34.01 cents: Sales at these centres totalled 6,081
bales
World Rubber
Markets
31 No rubber par Ib.
reach $9 this week. They
Lar although they
haven'
there was a sale at $8.90. Then they slipped. Yesterday
they were 25 cents better on the week at $8.80. But there's stil one more day left for them to add the extra 20 cents,
look set for it on Monday when New
119-119/4 unquoted sharebrokers
112-113
10434-1003
that
failure
my
York Sugar Market
in-
rates.
to
Previously the disccunt was arbitragers. The buyers rea- smaller than the difference in soned that for now nearly six money rates, so that there was years, the Bank of England had a "turn" in putting money into
never failed
support spot Lender an interest arbitrage. A sterling unlimitedly at or above mover of international capital 10 $2.78. and so would probably London covers the forward ex- still be doing it when present change so that he can take it forward positions matured (e. cut again if he chooses. When become spot) three or siz the cost of the cover is less than months hence. the difference in money rates. he has a guaranteed proft.
never
REASONING TARNISHED
may soon be
come
even
*New York, July 7. World No. 4 gar futures closed today unchanged to two- I had almost lost faith in this points lower, with no sales re-
|| The chatter about flexibility broker
SELLS SPOT STERLING and began ported. yesterday
has tarnished this reasoning, Singapore, July 7. chiding bim for the
of Domestic No. 6 sugar futures The rubber market opened firm his prophetic vision. But he cut closed 1 pois lower to 1 point supporting at any where round polished of. By definition, the
When forward sterling is self-but the tarnish but later cased prost-taking with me short contemptuon af
sales at 45 con- $2.78, the Bank of England can mere question of flexibility can=" buyers hésitant. Futures:
presumption and told me with higher with
not arise until sterling becomes make the flow of interest arbit-convertible. Even if all the tides 12914-1243 that rare brand of confidence tracts.
steady rage as big or as smalt as it suddenly turned in Britain's World futures held peculiar to bookmaker and with no world raw sales re-likes, because it can then always favour, it is difficult to bellere
Wheelocks.
ported. However, dealers would be $9.50 before long dicated business is pending simply selling spot sterling and within
repress the forward discount by that convertibility could bely $12. and eventually
*Cined
sugar with Iran and taking in the dollar. It is within the three months of a DECLINING YIELDS
Greece.
particularly fond of that normal forward exchange con- Steadily declining yieds have 10116-10232
Domestic futurts showed little kind
of hot money if it had tract, or for that. 1254-125 made little difference to demand
the 97-99 for the other favourites. Banks change. Futures:
come in on any big scale the within six mot matter, Contract No. 4 (world)
Indeed the ællers of forward. 12315~1271
Bank would
probably have are yielding 4.4 per cent against
323-4 taken steps to repel it (as it did sterling may realise that they in May 1954)but still, that is have fallen victims of a fallacy. comfortable position to be in Flexibility la net to come before convertibility; convertibility can- not come until the conditions"
clip cannot sterling is quoted at an
abnor discount. In mal
plain common Until the rumours gained sense, the fored flexibility is, credence, forward, sterling had a highly unlikely to come phin buying side near enough to $2.78. the break-out from the present This buying provided a counter-gid limita con be on the up Prem, part to the sales by interestside China diail Special.
The market was easier
No 1 rubber per.16. *
July
Augu
September
July
No 3 rubber per b
July
No rubber per 1b.
July
M4
Spot rubber
unbaled
Standard Qu of Ind.
Blanket crepe
Standard Oll of N.
13815
No. 1 paļu erepo p
Stokely-Van Camp.
48
LONDON
Studebaker-Packard Corp.
101%
5.1
with
early in May. In the "Blue Sept
det
Surat & Co.
3.20 3.20
Texas Co:
1631
Tide Water Aam, Ost
32
Prices:
in
207 Settlement house term:
May) are now yielding 455, May
Phones Electrics (0.1) 5.3, and
July
3.28
DOIS 5 August,
20815 | September
-35
67% October/December
27314 | January/March
Spot(cents per 1. job
Cuba)
Contract No.
22 Apriline
3.28
3.23
5.48 5.48
It is picasant for a central bank
to know that it has a means of
arc
to its reserves if it chooses to take them.
8504
July
5,35...
Aurreal September
654
Estale crepe thick July
4832
thin
Uma Prea
United Press.
Twenty Century Fox Film
Union Carbide
Union Pacie Railway
United Aircraft
U.S. Gypsum
U.S. Line Co.
US. Rubber-
US. Smelling
US. Stoc
Verner Bros
Westinghouse Electric
les spot closing at 37 pence per lb. Chip" section, Lights (565 p.c
474 General markets, cif basis, Doria:
4.25.
as I've said many times before, with land prices it boom levels and with Hittle Interest in Auz gold bare and American dollars. Nov. the share market has a great attraction Dividend increases May and new listes are, in the offing. in ths Ulity group. It would
Mar
pot-(cepts per tibi dif
adding large amounts of dollars or be ripe while forward
stare anāls - 11h Aug.
1th Aug.
for Singapore. Penang Rangoon & Calcutta
from Calcuttan Rangont & Struts for Japan
from Japan
for Singapore. Rangoon & Chittagong
P. & O./B. 1. JOINT SERVICE
"OLINDA"
due 14th July
from Japan sails 15th July for Singapore, Madrus, Karachi, basrah. Khor- ramshahr & Kuwait
"OKHLA”
dur 14th July
from Karachi & Bombay
عراج
sails 13th July ́for Japan
EASTERN & AUSTRALIAN S.S. CO., LTD.
due 10 July from Australia & Japan
Discharges only
"NANKIN**
"EASTERN"
"NANKIN"
due 31st July from Australia als 2nd Aug. for Japan. dus 19th Aug. from Japan
lls 20th AUR.
for Sandakan, Rabaul Brisbane, Sydney, Mel- bourne & Accipide
All vessels have liberty to call at any ports on or off the route & the route as sailing are subject to change or amendment with or without notice.
for full particulars apply lo:- MACKINNON, MACKENZIE & CO.
OF HONG KONG LTD. Telephone Nos. 27721-4.
EVERETT
LINES
EVERETT ORIENT LINE
Fast Regular Freight Fefrigerator Pasmager Servics Loading for Bingapore, Penang, Rangoon, Caletta and·
“URADEVERETT”
"LENEVERETT""
“REBEVEKEIT“ "NOREVER ETTTM“
Chittagong,
Sails July 1
Aug.
- Supt.
-- Sept 21
A. July
~~~ Aug.
1
-- Sept.
3
-Sept. 20
Att. Aug.
7
--Aut
-- Aug. 24
me,
Sept.
+
Sept.
Loading for Kobe, Oaks, NAEDYS,
"REDEVERITT" “NOLEVERETT "TRADEVEBYTT”,
"LENEVERETT“
Yokobanza.
Sails Aug..
- Sept. 24 - Sept. 15 LIMITED PASSENGER ACCOMMODATION. All the above subject to alteration without notics.
EVERETT STAR LINE.
FÄST BEGULAH FREIGHT REFRIGERATOR SERVICE Leading for Singapore, Fort Swetzenham, Madras, Colombo, Bombay, Safach & Persian Gulf Port
NAAR LAT. July
•LÀO":
Sails July “STAR BETEGEUSE"--- Aug. 16 win Ang *BTAX AECTUEUS”. «
Sept 9 Sept. Sept #BEAR ALCYONE"
Oct. 3
25
Sept Out!
Loading for Kobe, Opka, Najoys, Tokohama. “STAX BETILGEUSE” AT July 18 | Balls July 19";
Aug
“STAX AKOTORUS” #THAL
"STAR" ALGTONE": "4.0"
A Aug. 13 -
·Sept. 8 Best Det. Oct."
7. LIMITED FASSENGER, ACCOMMODATION.
· All the shore subject to alteration without notice.
EVERETT STEAMSHIP CORPORATION S/A (Incorporated in the Repable of Pagazza with Limited Liabliky)
Chinese Department: Telephone 28293. SE Queen'i Building, Telephone 31206, -