1955-07-08 — Page 9

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, -