THE CHINA MAIL,
FRIDAY, NOVEMBER 11, 1955.
TRADE
COMMERCE
SECTION
NEW RESTRICTION ON CREDIT
Hongkong Bank Order On
Overdrafts
Circulated
SHARE MARKET'S SHARP FÁLL
By A Special Correspondent
Share prices fell sharply on the Stock Exchange yesterday—many to their lowest levels of the year-on the news that the Hongkong and Shanghai Bank had informed clients of new restrictions on credit.
I understand the Bank has circulated notices stating that as from January 1, it will lend a maximum of 80 per cent against share securities. In the past the Bank has been in the habit of lending up to 50 per cent and I understand that it is with the object of countering what has come to be looked upon as a certainty, that the Bank has issued its present circular to some clients.
This, in effect, means that people who have overdrafts to the value of 50 per cent of their securities will have to reduce them by 20 per cent, or by however much their overdraft exceeds the new limit, by December 31.
WORLD
COTTON
MARKETS
Although this new restric-, shares to their highest level for it has slumped to the tion may be made applicable cars
depths of a depression.
clients, under-
1 com-
* The
Sharo Banks
Untams
Wheelocks
Land
Share Market At A Glance ★
Year's
20%
TODAY'S
SHARE PRICES
(From Our Correspondent)
Business done on the Hong- kong Block Exctmngo thin morning amounted to $370,000, Noon quotations and the morn- ing'a transactions:
HARES BUYERA SELLERS SALES BANKS
Low
Year's
prior to
hight
Nov 10
2200
1530
Nov 3 1080
Nov 10 1660
Up or down $20
1070
905
945
935
---$10
HK Wharf
83
02
700
-$2
10.70
0.90
$1.05
8.90
-156
Providents
17.10
11.80
1514
1435
HK Dock
20.70
23.40
28.00
Hotel
30.00
14.70
17.30
16.40
~100
7834
03
€2
ይግ
5
20.30
10.60
249
23.60
191
105
108
101
2434
16.60
21.10
-000
K Whart
(n) Electrio Telephone Cements
19.20
1314
17.20
17n
-200
46
334%
3014
3734
3741
20.20
3304
3114
48
25.30
381
34
25
20,20
10.00
18.20
8.25
5.00
7.18n
-----#134 114 -$1.40 7.150 steady
LAND ETC. HK Hotel
Tram
Yauratt Lights (0)
Dairy Farm Yanglaxe
New York Stocks
In Late
Decline
New York, Nov. 10.
stand
It is hard to see
the what' that only
future holds or what its new paratively small number will
norm is likely to be. That must
Late realising in a handful of recent leaders be immediately affected. wait until later. The only guess This is because many over-1 would dare hazard at this gave the stock market its first decline in nine ses- drnfts
will be nearersions. are sufficiently age is that t
the present rates than the boom secured. That is, they are level of August. either equal to or less than New York, Nov. 10. 30 per cent of their security Cotton futures today hacking, and therefore are
irregularly not affected by the new or after opening around $1 a der. bale higher.
settled back
Su
Jac
Hongkong itse
atel Shanghai Bank is the only me of the "Big Thro to have taken evening-up as action.
Technical realising After three-day riar, plus increased hedge selling and before tomorrow's holiday, do
Why?
I think investors should
concile themselves
at Keruing investment
fact:
is not likely to produce any.
or
ike the excitement Using Interest provided try the mid- year upswing.
Turnover thin week ww sbout the second lowest record Like the first instal-ed this year': 11 amounted
to
of the
minated the market when annent of the "credit squeeze" $3.6 million in a three-and-a- overnight accumulation of buy- ing order: bad been filled.
At the close the list ruled 3 tower to 16 points
higher, Open- ing prices were up N to 19 points.
New Orleans closed un- changed to up 18 point.
The New York Cutton Ex - change will adjourn tomorrOW fur Veterans Day and wit
main closed until Monday
the morning. However,
Newf (runs Exchange will remain
upen
the
ruising
borrowing helf-dey trading week, Monday rate In August the now nove being holidny Is directed at discouraging
The work share market
bad Dnd
got off to a speculation channelling investment
on Friday when share into start
prices wilted under selling pres- more economically useful enter-
Particularly prises.
sure which Industrial
cut utilities by development and expansion. IL
about Avo per cent, Bargain is understood that where neces-
hunters appeared on. Tuesday after the holiday, however, and the market recovered slightly. There Was some small-scale liquidation at the close and on Wednesday conditions were dull.
sary special consideration will be given to this type of investerent.
ANOTHER FACTOR
Partly, then, it is to ensure "vist reservoir of idle 1. money in Hongkong" is invested The Colony's Jong-term
Extra-heavy entries under the that the loan programine, along with sustained demand for cloth in t
the textile market and business
of outside commodities helped tu
9 PER CENT FALL
dividond
benefi
There is also another factor. The raising of the borrowing month. By the way. Producer impoonbugs unter Tate has largely succeeded
led damping speculation un
shape market sentiment
the loan for the week
HIL the
Nov, 4 venched 442,748 bales, a share market. The weekly turn- jover has fallen from a peak of new high in the season,
The $14 million
late in July to less net stock of 1955 erop ention than $4 million
Share today. government N. THIS Totálied
įprices have declined by between
13 and 30 per cent.
1,917,809 Galeri.
Trading Interest in
volume
Anci
openi
Volume Open baterest
43,100 435,700
it is this altuntion with which the Exchange today [the Bank is concerned. For while share prices have fallen, yields have risen. And if the market 17. 13
much farther, which [now almost certain, yields will the point where shores will again become attractive in- vestments.
were:
Meni
Dec.
Mar
37.000
JAA.100
May
071.700
July
21,900
222,100
Oct.
Dec
11.200 7.200
183,900
pl.opp
Mat
I'nlat
2,000 22,500 210,700 1,913,500 bules
NEW YORK
J'ise to
13
At this point speculators may return, seeking overdrafta 10 finance their share purchases To
#large potential over-
Prices of futures coserk today counter an follows:
drirti. the Bank has decided 34.83n
that as from the beginning of 13.71-72 3180-91 Text year it will lend up to 30 31.00 per cent against securities and 30.00-02 11 is advising ellents of
position
The news of The now credit restrictions, however, came as a shock to
Ice House mhhy in
Spel
December
March
Max
July
October
Decembor
March
NEW ORLEANS
23.00
28.78
28.03
this
Prices of futures closed today Street. Shares fell by as much
Morch
May
na follows:
Spot
December
33.76
as mine per cent and bUYCTS 33.50 disappeared, obviously
waiting
3.90
13.07
for more attractive prices next works.
29.00
29.00
20.78
23.04
BROKERS' CONCERN
One broker said: "This is go
ΕΙΤΟΥ
The Wheelocks still awaited. I understand that A will be announced later this
i reader points
in out an
my article last week, I said Whoe- locks wus yielding a shade over That, of course, six per cent, was incorrect, O11 last week's rates the yield was about 8.3.
and this week it is 8.4
Yesterday, shores fell by up to Realtics almost nine per cent. were the hardest hit, falling from $2,025 buyers to $1.85 the close. Lanas dipped $9 $57 and Electrics and Tate- phones
were marked down sharply.
Despite the average decline amounting to $1.38 in industrials, 0.11 in rails — there were many substantial gains and, of 1,194 issues traded, 486 were higher, 456 lower.
Trading, at a brisk pace early In the session as prices moved up. lightened when proft-taking set in and turnover for the day totalled 2,650,000 shares com- pared with 2,680,000 yesterday.
Du Pont was the chief soft spot-declining 8 points to $223. Standard Olt (NJ), off 1% to $148% also weighted on the Industrial average.
General Mətǝrs*
new common stook continued to attract heaviest volume and it rose an- other point to $491. Chrysler Improved fractionally.
Steels were Ärm.
Lockheed Aircraft Loews Incorp. .............. Lone Star Cement Ch. Louisville & Nashville Lowenstein & Bons Mesabi Iron Curp. Minnesota Mining
Mission Development Monsanto Chemical Co. Montgomery Ward Motorola Ing, Nartor Cash Reg." National Dairy Prod. National Distillers MadSocial Lead .... National Steel Corp. New York Centeni | Oim Mathieson
Otle Elyatore ..... Pacific Gas da Eico. Owen-nola G Pacifle Western Öll Pan American Airways Paramount Pictures Parke Davis Co Penny J. C. Co. Penn, Salt Co Philip Petroleum Procter & Gamble Co. Pittsburgh Plate Glas Publieker Industries Radio Corporation Wide moving special issues Republle dicel were beaded by American-Reynolda Melal Nowallan Steamship which Bhell Oil Co. climbed more than 9 points. American Potash grined 4. International Sult, 5, Cincinnati Milling more than 4, the last reflecting a stock split proposal.
In oils, Texas, rose more than & point, Gulf and Warren lost 1 1⁄2 and 1%, respectively, on pront-taking following news of their plan to merge.
New York Stock Exchange bond volume was $4,250,000.
American Stock Exchange volume was 670,000 shares
Binclair Of Scenny Vacuu
South Porto Rico Sugar Southern Nailonal Oas Southern Railway (Com. stendard Brands Stridard Q of Cal Standard Öll of Ind Standard Oll of_NJ. Sterling Drug Co. Stokely-Van_Camp. Studebaker-Packard Corp. Swift & Co.
HK Task
DOCKS, ETC.
Dock .....
Providen
(OM) Wheelock
!K Land Realty
RUBBER
A. Rubber
Trast UTILITIES
Tram
Y'mat! Ferry
C. Light (0)
C. Light (N) Electric
Magao Elec Telephone INDUSTRIALS
Cement
2,00
Standard
יד
Oil
Expansion
New York, Nov. 10. Standard Oll, Co. (New Jersey) announced today it will spend $1,200,000,000 for expansion in 1956 in anticipation of continued prosperity in the Communist world.
non-
Jersey Standard the world's largest oil company -thus became one of two glants of industry that will spend billion dollars or more 10%
for expansion In 1950 alone.
General Motors, which earmarked $4,000,000,000 for
in the схрапатол postwar period, kas about $700,000,000 remaining to and spent this year Berk Chrysler Corp. dis- closed today if plans to spend $1,000,000,000 over the next United Press.
1070
200 x 20
be
14,00
8.00
0327
0.30 800 1000
3000
6000 G2 8.94
2000 8.80 50000 4.40 3000 at
13.00 15.80 2000 ∞ 10.30
54
50
1000 ar t
800 or 18 86
500 or 15,650 1500 15.00
2500 10.70
1.03 1.00 5000
5000
1.00 70 $702 14
4000
240 270
1.83
1,00
84589832882 28 28 2. CHAR‡Ã ¤œÊ
20.0) 22 303 21,00
500 or 21
100
2015
10 500
33 3515
600
200 39.50
1000
اثر
300
su bu
33 2000
לו
300
401%
Пtope
20
STORES, ETC
Dairy
17:00
200
Crawford
COTTONS
106
Textile
MISCELLANEOUS
Afiled
34
3.70
4.40
WORLD RUBBER PRICES
£20$447
New York, Nov. 10, Rubber futures today 235 points closed 165 higher with Halos of 538 42d.contracts.
49** 481 01
to
Strength of London pointed up reports of Russian buying over- seas and speeded before move-
local speculators by 56% ment
and the trade interests before the long weekend holiday. The local market will be closed tomorrow -Veterans Day-and will re, sume Monday morning
In the spot market, off grades Bvero neglected. Most of the
interest centred on one shee.s. January ches sold from
3731
407%
1976
11
1046
43
114
Water Aash. Cui
Twenty Century Fox Film Union Cartile
20
103
472.52
173
01
to 43% cents.
200
214
445%
Dow Jones closing hvernges 11 water
were:
tu
30 industriala
20 ralle
10 uitles
Yangtze hold steady and the only share to rise was Rubber Trust which pushed up from $2.40 to $2. Last wook they were $2.95 sellers, Amalgamated, $1.00 nominal last week, sold at $1.55 at yesterday's cluse, down 10 cents on the day. On the week, the Singapore
ts up price
from Stralis cents a lb.
Tiw
54 Biocks 40 bonda
Cons, future price Index Comm, spol price index Moody's index
ion, Pacific Raliwy 160.08 United Aircraft 64.31 1.9. Cypum 16TAL US. Line Co. 99.00 UB. Rubber 151.85 US. Smelting 158.43 | U.S. 'Stoel 192.50 Warner Bros.
Closing Prices
Alden Ind Acy. material Ailled Chemicals 110 to 118 Ailled Mille Fac.
Allis Chalmers American Airline American Cyanamide Co
Singapore
Stock Market|
•
Singapore, Nov. 11. Brokers today
quoted
Future closings, American Ing to hurt the market badly. I following stock prices:
connel ser how there is going Botu, Lintang Rabber, Co.
Borneo Petroleum
Am. Mach &
dry.
American Metal American Smelting American Tel & Tel Amoro Teb. "B" Anaconda Copper Armco Steel Baldwin-Lima-Ham. Baltimore &
Ohio
Bendix Aviation Corp. Benguet Cons
Bethlehem Steel
the Bong-Amoplano
Borden (The) Co.
Burroughs Add Maching
Jay October December March
LIVERPOOL
middling, In pence per lb. were
Operate Canadian Pacife R.
us follows;
Old contract
20.40
*3.70
23.60
to be a reCOVETY, Some people will obviously have to shares to redues their overdratia and this is going to send {mørket oven lower,"
Bell British
the
Ltd.
Speciente Consolidated Ta Ord. *** Fraser & Ngave Lid. Gad, Fraser & Neave Ld. 203%
olam, prod. tangisang de Shanghai Bank-
$1.50
{C. I. %. Fihanetat Corp.
Brüelters
tve
29/- $1.00
Caf. Tractor
Celamere Carp
Chase Manhat. Bank
Chile Copper
Chrysler Motors
05,00
$1.00
Dec./Jan,
Mar/Apr.
May/June July/Aug.
New intract May/June July/Aug.
Egypten Karnak
SAD PAULO
222.25
25.00
24.03
Jan/Feb,
40.201
Future closings, in cruzeiros per kilo were as follows:
Déc.
Mar
May
20.40 20,40 29.00
July
29.00
Other brokers
were Dlso concerned at the move and the general opinion is that the
Hocukang Tin Ltd. market will fall soveral more empast Lac. ar points before stabilising factf. Zumas Rubber Kataton, LAZ, 19
A banker sold: "This is a veryMalmynn Hreweries w drastic
New Berandah Hübber Co. move coming st this lime. The share market is in a Pelzlnut Tin Zid, sick
state and needs careful Rallies) Hotel marsing. But instead of medicine, inspire Cold Stora
| South" "British Insuration In the US the average pricot gets a whipping.
Lod. The reduction in overdrafts trata dute by 20 por cent in one fell woonstrate
of 18/10 middling colton at 14 designated spot markets was 39,70 cents. Euics Intailed 85, $12 balos-United Press.
$1.80
Colgate Palmolive Co. Commercial Credit Commonwealth Eler. Consolidated_Edison
Continental Gif of Del. Continental Stee Com Products
Crane Co.KAN 40xd Crown Zellerbach
Westinghouse Electric West Va. Pulp & Paper Woolworth
40%
United Press,"
London Traders Cautious
415
up to 414 conta December ones sold to 42% conta as the floor closet when
buyers withdrawn as sellers moved up
February ones
sold from 40% to
41 with
later sellers at 41% cents.
In the shipment market, three browns reportedly sold at 30% conta for first December ship- ment, or February arrival cost and freight basis. Locally
spot No 1 Rs were quoted at: 44 cents, Futures:
Dec.
Mar.
Mny
July
Sept.
Dcc.
43.60 40.9043.03
29.50.00
30.45
37.33
30.55.
on
SINGAPORE The market was steady
beller overseas advices and im- provement Futures:
Doc.
in
sentiment.
No. 1 rubber per lb.
Nov.
11776-410),
Jan.
$1894-11015 inquoted
Nov,
No. 2 rubber per 1b.
Nov,
rubber per lb. No 3
4 rubber per th.
Nov.
10034-11014 11435-110 10015-11015
213-11 317-98
133-139
London; Nov, 10. Unfavourable political news from Geneva and the No. Middle East kept traders Spot rubber unhaled cautious, and stocks closed Blanket crepe
No. 1 pale crope irregularly lower on, the London Exchange today.
401% British Government stocks 4916 opened weak, but managed in. lly just before the close. War €73. its
to
201 Loan dipped -2836 | three-year low, then recovered
5516 and closed unchanged at £74.
LONDON The market was steady with Apot quufert at 34% penco per
b. Prices:
Bettlement house term:
344-347%
チャイ
Consols four per cent fell for markets, eif bash, ports
No, I spot ten
Dec....
Jan/Mar.
Apr./June
July/Bep!
11.7300
Cuban Amer, Bugar Curth Wright
IN
264%
Diamario: Aikall
Dow Chemiesta
5841
od, but other to £1 or EM
losses were held
Nov.
Dee.
Jatt.
Dupont de Nemours
Estate, crepe vequoted,
$16.40
Eastmari Kodak
United Engineer Ord.
$10,00
KU Rang National Gas
is too drastic. It should have Wenme arom
boon done gradually as in Now
York, for example, where it is
reduced fvo por cart at a tímo when necessary.
"A150. It la profty hard ex- London Foreign,
New York Foreign pecting people to reduce their
Cariada
Exchange
Krland omgi
overdrafts by this amount in šk weeks. It is bound to have ro- percussions insanitet."" $1.00-12 The
New York, Nov. 19.
oft
the
nto
otwa
F
Exchange
ahtare
New York sidde: to Montreal 2.00-7/31 the question. No comment is
The from market rate of the necessary from me, soupt a Japanósé yen to the US dollar, it has certainly been a ydar of pei, quoted, by Picku World extreme for die stad - Bo
HADES18,Und change, Currency
From a specipeular boom which carried, many
ramiky, Wirynce Corp General Bloëtela,
(now)
Industrials were quiet, and }; ****
Bowatera prices drifted lower. was an exception, gaining 28
Wall Yesterday'a
Street advance. helpodolla Bhow
moderate stronglh early in the session. But they closed with a number of-fractional": lowson Dutch, moved agnitet, the Royal tide kind
and gained. £24, neus
Japanese bonds turned Casy In the foreles bond section did Potash seven per cont lost £1.
buit
"other"
Germans lamins showed. fractional gainNARIO
Gold harde ware
rubber shafde
[daspils "odifirma "dommodity--Uni
AMSTERDAM
The market was stondly. Prices closed today. In gulkier's per kilogram, clf Nov, ns follows.
No. 1 rubberʻida No. 2 rubber No. 3 rubber
No, I crepe
3.30 pala 9.30 paid win paid! ***Valled Prest
30 buyers.
YOETA
New York Sugar Market
h
New York, Nov. 10 World No. 4 uger futures closed unchanged to 1 point tower with salés of 54 contracts.
Domestic No. 6 kugar' futuros closed unchanged to 1 point lower with sales of 121 contragtn.
Pro-holiday evening-up opera= tions between trafo Interesti dominated the trude. The markets will remain closed until Monday morning. Futures:
Contract No. 4 (world)
March May
July
Segit.
Open interest: 1478 con
от
3.10 3.10
3.19
3.19
Spot-(conts per I, fob
Cuba)
contracts.
Contract No. 0
Alarch
6.32
May
6.48
July
5.45
Sept
5.01
Spot(centa per lv. eit
NY ex-duty)
Open Interest: 660 contracts.
United Prest
P&O B.I. E&A
COMPANIES
PENINSULAR & ORIENTAL S.N. CO.
PASSENGER/FREIGHT SERVICE
"CANTON"
"CARTHAGE”
"CHHUSAN”
Leaves Loddon Bue Hongkong
Salled
0th November
7th December
10th December
12th Decembar
0th Janua
14th JanamTY
Via Southampton, Port Said, Adam, Bombay, Chiambo,
Penang & Singapore
HomewardsJ
Leaves Hongkong Bus London 18th November 19th December
10th January
16th December
Outwards "CORFU"
"CORFU"
"CANTON"
"CARTHAGE”
13th January
30th January
14th November
13th FebruRY
27th FebruaTY
**CHUBAN"
Via Singapore, Pahang,, Colombo, Bumbay, Aden, ......
Port fald & London
Also Calls Diarsellion.
FREIGHT SERVICE
salm 11th Nov
for S'pore, P. Swetten- ham, Penang, Colombo, Adon, Port Said, Genoa Marseilles, Candblanco, Flavio, London, werp,
Hamburg
Rotterdam
Ant-
"SUNDA"
"BOUDAN"
due 12th Nov. Kalle 14th Nov.
from UK.
for Jopan
With liberty to call at Belawan Datots of Biler RIPNICE Ports and at Bombay it inducement offers
Tanks available for carriage of Oil in Bulk. Space for refrigerated carro. Limited Passenger socommodation
BRITISH INDIA S.N. CO., LTD.
"SANTHIA" Mail 27th Nov.
"SIRDHANA” due 26th Nov.
walls 27th Nov.
falls 10th Dec.
"FULTALA"
for Bingapore, Penang & Calcutta
from Caloutta, RenBOOTI & Straits for Japan
for Singapore, Chip- tagong & Kangoon
P. & 0./B. I, JOINT SERVICE
"OLINDA" loads 28th, Nov, fer__8′boro, BOMBAT.
& Karachi toads 2nd Dec. for Singapore, Madras,
"ORULA"
Bombay
due: 4th Dea. from Bombay / safle Din Der. loads 10th Doc,
"URLANA"
"OBRA"
“UBLANA"
funds 8th Jm.
S'pore,
for Japan for
BOMBAY, Karachi Baerah, -Khari ramshahr & Kuweit
for
S'pore, BOMBAY, Karachi, Bamah, Xhor- ramehahr & Kuwalt
EASTERN & AUSTRALIAN 5.S. CO., LTD.
"NANKIN" lasds drills Dec. for Bondakan, KABADI, Brisbane, Bydney, Mel- bang & Adelaide due sih Dec. from Australia salls 11th Dec, = fet Japan
"EASTERN"
All vessels have liberty to call at any porté on or off the route & the route à sailing, are subject | - to change of kmetidment with or without nollers,
for fell particulars apply le
MACKINNON, MACKENZIE & CO.
OF HONG KONG LTD.
Telephone Nox. 27721-4.
MESSAGERIES MARITIMES
PO Box 53% Queen
Exchange Rates "VIETNAM
Poorning at the following TATARSANDS Us, dollar. (per (1)ant
FAST PASSENGER/FREIGHT SERVICE MAY ""LAOS” ...
"CAMBODGE"
Esalling Doc. Brd
säiling Dec. 81st salling Jan. 26th
FAST, FREIGHT SERVICE
NKAY
usalling: Doe, 19th sailing Jan, 10th