Weekly survey of
THE CHINA MAIL, MONDAY, JANUARY 23, 1961.
American economy.
KENNEDY'S APPROACH
London
Proposal to buy
stocks rise ordinary shares
London, Jan. 22.
Steady buying, across the week that gained momentum on Thursday spurred by casier credit terms for car and consumer durable sales, plus hopes of a further bank rate cut to follow Western Germany's move, lifted stocks into higher ground.
Investment interest broadened Lut the publle was a bigger buyer than the insitulla and take-over of the Ford
due for payout next Tulay--was Anuing a niche.
Chemien Nuws of imperial industries
raining seme new capital. andom panied by a rosy profits forecast, helped to boost most blue chips, Counters of this biggest Bri- ti Industrial enterprise soare 5/3 and crossed
the alching line at 70,3.
accom
or
re-appearance of the dollar pre- į bars
certificated abroad This went to one per would move into the mines. nfum, cent showing that some British The movement lost steam as the
week wore Investors judged there was anore
on despite
heavy to go for in the New York mar- buying of gold in the Loudon ket than in home stocks, Marfree market on speculation that kulmes said a proportion of this the United States would raise £55 Trans-Atlantic buying was the price for the metal. Bank! going into U.S. Fords because of England manceuvres kept the former holders of British Ford gold price down but on Friday stock wanted to stay invested in the volume traded ran close ta the company. Most sectors of last October's gold rush.
Hist shared the Coppers ended higher and the industrial
Stores, breweries, steels, Į ŝins were up fractions. uplift.
chemicals engineerings,
and Short and medium-dated Vlaatles paced The rise, bonds met demand Tobaccos were a strong market. the gill-edged market son c
Olta moved erratically but the leaders ended slight higher shine on hopes of a bank rate cut in the next three or four weeks, but the undated stocks among the government bonds edged a share lower,
Collar
mainly stocks were higher, paced by Shell Oil four
five trading; points up on the daya. Elsewhere gains were smali,
DOLLAR PREMIUM Despite warnings of a tough budget, bigger wage demands, poor exports outlook. plus u on the week. Standout was sprending of short-time working Anglo-Egyptian "B" up 9/9 to in several sectors, investors were 22/9
on news of full-scale clearly still ready to back resumption of
diplomatic re- equillen,
lationa between the two countries following the Suez breuk.
Gold gained strength early in by reports of US. the week
Johannesburg and buying in the theory that some Ameri- cans forced out of holding gold
The Financial Times Index jumped 5.5 points to close at 317, This was about eight per cent higher than the low point of 293.4 set in early December, but still a long way from last year's high of 042.5.
A feature this week was the
Londen, Jan. 22. Turner and Newall proposes
to re-ke BA cffer for iho ordinary shares ot British Industrial Plonties, it was an- nounced here today.
Some idea of
his tactics and methods
New York, Jan. 22.
the Some
New York stocks steady after weeks of gain
New York, Jan. 22,
The stock market steadied this week after three
weeks of rising prices and heavy volume.
The list moved through a mix-. ed pattorn most of the week but-managed to eke out a small
sain on average. Volume dipped year high level, but still averaged
from the previous week's two-
four million shares per day,
Rails and utilities showed bet- market per- ter than average
the The United States got a new President
last week but it was tackling samo old economic problems. of them, in fact, were getting pro-formance with the latter group
The ik will be on following basis: For every seven culinary shares of 2s each in one ordinary D. I. Placties
£t of Turner & share uf Newall, plus 28s In cash.
Full details of the offer, which is being considered by the Board of B. 1. Plasties, and which is subject to its approval, will be sent to shareholders a scon as possible.-China Mail Sperial.
gressively worse.
Unemployment reached 6.8 and steel order cancellations
nation's
Detroit total and deferments from per cent of the
the basis of slowed down the steel industry's
cur labour force on
recovery from year-end December figures of more than 4.3 million. This was the highest į taitments. for that perica in twenty years. Government forecasts envision
Jump to 5.8 million in decrease to 5.6 m. February, 5.4
and gave BANK OF ENGLAND January night
little Foreign bonds showed change but Greeks held firm,
Rubbers and lens lost ground, in quiet markets,-UPI.
STATEMENT
London, Jan. 22.
stato The Bank of England ment for the week ended Jan., 18. reads as follows: Noten in circulation Public deposits Private deposits Government securities Other securities
eripla |itatio
11,073 4401
Inition in March and 19
million in April.
In one of the rare projections for 1981 ofcially endorsed by stecl in- the government the dustry was seen holding to 1060 output levels at n overall average of 08 per cent of total operating capacity.
and
HONGKONG
STOCK EXCHANGE
¡£Dur Own Corrösjiondentä
Business done at the Hong-
Stock
this Exchange kong
Akarcz
101515
Buyers Sellers
Salca
1513
20 2500
101503
1285
·
20
402412
272
74
"#
100 74
490 70
1000 or 701,
335010
1K Gaz
17,90 10.10
400 17.20
210 / 1714
650 or 13.00
Whart
reaching Its highest level on average in tnore than 30 years. Some brokers said the interest in utilities stemmed from the cmphusta new administration's en federal support to depressed arena. Rails were helped by some pointed interest in the Bal timore & Ohio Railroad, which carried over into other stics, and by a pickup in cartonelings.
Trading In the B & O cummon morning amounted to approxi- stock was suspended on Thurs- mately $4.480,000. Noon quota- day because of an accumulation tions and the morning's tran- of sell orders, but began again sactions: President Elsenhower's last on Friday after a delayed open- Personal income turned down
to ing which resulted in a sharp at the end of 1980 for the first budget for Oscal 1901-02
inore than six points on Wednes-. time in many months, privato which the Kenedy administra-price drop. The stock had driven K Bank..
day mostly on heavy buying by Lond. Reg. on enormous housing construction was down tion may or may not adhere, re- to the lowest level In twn years yealed
unsuspected increase the New York Central in a lost. Al
ditch effort with home loan
to frustrate the Lombard interest rates hitherto
output in government outlays, especial Chesapeake & Ohio's drive for a Thikoo C10.013,173 dropping: Industrial
And there is thely, for delenes.
merger with the B & O. 312.329,758 dropped In December for
Use continuing gold drain with +12 210 232 Afli struight month and
to SOTTIL 63,205 920 only three
per cent above the total reserves down 33,126,759 1957 average; automobile pro- $17.5 billion
The overall aelion of the st ruction and sales
Nobody knows for sure how down
President John F. Kennedy will on the week was generally can→ Lackle these various problems sidered encouraging, but Wall until he has delivered his State Streeters still anticipate a perlod of the Union message to Cori-ut consolidation or corrective re- Cress sometime this week. But
Any reaction, however, is not there has been a multitude of leaks
ns to programmes and expected to be too severe. One expert sald it might well be methods, some of them officially
contined to the steels, electronics, inspired.
electrical equipmenis and other One of the most Interesting groups whose carnings outlook in UK Dock and one that would require in- poor and whose dividend rates? ternational
co-operation
are in Jeopardy. was certain to result in reper Other factors pointing to a cussions, got newspaper pub-reaction are: This is about the time of the year that stucks of- city last week. It would con- sit of joint diplomatic-ceptio ten pro subjected to pressure; technical props to the market are sold to have been weakened
were
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#
BRITISH
OVER S EAS
B⋅O·A·C07
AIRW
WAE
CORPORATION
and
détend
action.
ENCOURAGING
Wheelocit
2000 17.00
1000 $7.00
1000
18
2500 * 18
2300 / 20.00
7000 11
9000 11.10
. 11.2 11.30 13000 or 10.00
2000 or 11.20
2000 11.30
5000 112 12000 11.20
126 127 EO
400
1300
Provident..
25.00 25.00
1000
1000
500 60
1500 **
K Hotel
4212 43
Land..
1700 100
mic missions abroad to the position of the dollar. Pro- sperous countries such as West Germany and the Interest; and many investors are Betual stops Netherlands and in Asia, par-expected to await. ticularly Japan, would be per- by the Democratic administra Funded to abandon current de-tion to halt the recession before antionary procedures of tight extending any important
milments. money and relatively low prices
Sales this past week amounted Yaumati
01 01 in Europe by the sharp reduction in short
com-
New mild indation
overage of 4,146,094 shares, com- Ch. Light This, Washington informantspared with 22,227.180 shares or say. would case credit, raise an average of 4,445,436 shares
and take up instead policies' of to 20,734,470 shares or a daily irk "Tram
wages, push up prices and per day. "heapen" those countries' cur- The Dow-Jones averages rencies to a point where the finished the week with 30 in- alling dotlar "would relatively dustrials at 034.37 up 0.72: 20 gain. Pubilely, they say, the rails 142.84 up 3.21; 15 ulllities Elec... approach would not be as spec 103.45 up 0.83 and the highest Tele fie breause it might encourder since it closed at 105.15 on April obvious resentment.
30, 1930; ond 05 stocks 214.74 up 1.51.
TACTICS
tacties
5415
30
500 9
1000
20
1000
31/
33
3700 6
42
403
2000
250 c 301
....
30%
New
G.I. Cement
3
000 39 2000 1
GO eats
1000
2000 Ga
1000913
2100 or 0
Dairy Farm
1216
33
200
1000 2
1000
0.20 4000 8.50
2000 3.00
4000 D
Watson
*
Allied Inv.
3.90
7,65
7.70 1000 v 7.00
$74 7.00
line of these The oficial
MOST ACTIVE missions would be that the U.S.
General Electele was the most wants to see these countries change from the deflationary active issue with sales of 274.- 000 shares. It closed at $67% off tactics to growth.
Whether these
are 2. Sperry Rand was runner-up adopted by the Kennedy ad- with 220,100 shares, followed by Studebaker-Packard, Standard ministration may depend to u large degree on current negoti-Oll (Now Jersey) and Fairbanks.
Whitney. ations In Bonn for a greater
Baltimore & Ohio fnaity German share of U.S. military and economie burden. As to finished the week with a gain whether other countries make of 3%. The Central rose 14 and Textile .....
the C & D incked on 1⁄4. Univer- use of the proposed "mild in-
which signed flation abroad tactles will de-al Mateli
pi Intent" to Nanyang pend on how badly they will be "memorandum needed to balance America's merge with Universal Controls, 1960-01 and 1001-62 budgets. climbed 24. Vendo also in the vending machine group, jumped 22.
The belter gains were gen- | Ruch. erally registered by izzuos out- side those used to compile the average. Electronics stood | Realty out as a group with Texas Instruments up 13. Beckman
by
Both have been outlined President Elsenhower with mall safe maryin of surplus by very few people who really be Heve that these surpluses can be actually achieved.
A continued export drive la virtually certain to be led by Kennedy even with some export subaldies, if necessary. But there are doubla that it ean be successfully
main tained at 1960 levels.
the
In his State of the Union message, Kennedy will take a much dimmer view of economy than Eisenhower did in his. According to Washing ton informants, he will hammer on the recession and on the gold drain, stressing that he inds both problems worse than at the time he was elected. He may tell the nation that selu tions to these problems must tako precedence over less urgent campaign programmes, such as school ald and housing.
PLAN
up á. Litton up 43. MagnRYOX,
Amal kub.
4000 - 7,05
4000 * 7.85
$2.00 12,00 1000 1250
6.60 0.05
Trust 200 Humphreys
טד.?
3000 ## 0.00
10000 6.00
20 61 0.05
GODO 8,60
1000 .65
2000 de 1.00
2000 to 1.70
1000 * 27
2300 20.00
1.90 1.023 01500 1,00
5000 7 2.02N
1000 4 2.025
Int'l Invest 13 12 2000 12
up 5% Varian up 3 and HK & FE. Zenith up 4%. Druga featured Richardson-Gilmin
Inv.
10,40 2.470
Merrill up 91⁄4, and American Underwriters 11.30
29.10
Union W boat Home Products up 2. Revlon Biar Ferry 208 213 held the spotlight in the cas Macao Elec metics with a gain of 6%.
Lane, Craw. 421k
Vibro
earnings report. Kerr-Mcgee ad-
Sinclair climbed 3% on a good Cold Macz.
(Ord.) .. 8514 vanced 34 in this group. Ford Construction 10.10 tacked on a point while Chrysler and General Motors tacked on fractions. Steels continued de- pressed and showed little change. Dougins rose 3 and Republic 2% in the aircraft, while Bendix fell 24. Johnson & Johnson rose
43
10001210
200101
Stock offered
London, Jan. 22. another 744 points. apparently monwealth of Austrails six per Ten million sterling of Com- in continued response to the in-
cant registered stock 1975 and troduction of two new producia last week.
ten million sterling of six per The first thing Kennedy is re- American Telephone helped cent registered stock 1081/03 ported planning to do in con- hold the Industrial average on will be offered at a price of nection with the recession and the plus side
07, it was announced here. 2-point gold drain is a campaign to gain. Du Pont countered with a Holders of £20,678,700 Com-
the loss of 3. educate the public. This, informants say, will involve much more frequent radio and television broadcasts by Ken- nedy than has been the custom of other presidents.
There are economists in the
coun
United States, centring most around the Federal Reserve Toard which runs try's money, who think Eben- lower's assument of the economic problems is inade- Kennedy's qante, yet think Viow
meed not be as dimm as
he is making 11.
with
monwealth of - Australia 34 Of the total 1,455 issnice traded per cent registered stock 1050/01 this week, 800 advanced, 422 are offered conversion rights to declined and 137 hold unchanged,a maximum of £10 million in Now 1000-01 htchs were set by each of the above mentioned 174es and now lown by six. stocks. The balance of £578,700 w1i1 be paid out of sinking ILITY.
-UPI,
Agreed merchant
rates Canadian dollar, maximum sclling 17-5/10, minimum bay- ing 17-9/10 T/T; 17% 0/D.
Unit trust
They bellove in a solid busi- mess pick-up by late spring and in low of the present situs- tion they don't bollave in the nced of more credit apus. Thoy ray they cannot afford a fur thor chcapedng of short-term credit anyway as it wil reqult Buyer Prico Geller Price still greater gold losses-UPI.
First Hondcong Fund?
Lists for cash open and close on January 20. Conversion rights must be exercised not later than January 31-China Mail Speciát,
Exchange rates
Bluekyees we done in the locat nofficial
market ปปง morning at the folowing rates: U.B. dollar (per #1) per...
173 starting notes - (per #1) ..............
1200 Aurtallwn entes (ver 41).....
до Indonesian Rupiah" (per 100) ... $3.12 Sigala: (par 1901 KONTAK?. $1,10 | Mingapore (Sliačts)