1955-11-11 — Page 9

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