TRADE
THE CHINA MAIL, FRIDAY, DECEMBER 30, 1955.
and
COMMERCE
SECTION
Pago
The Share Market-1955 HONGKONG STOCK
HATEVER good Womens the year of the
goat ushered in, Hongkong investors in retrospect may fairly complain that they were conspleuously abaont in the second half of the year,
For 1955 will go down in Stock Exchange history one of the most extra- ordinary --and to the de- tached observer-one of the most fascinating it has ever expertenced.
The two dominant
Were
influences
the huge influx of money to the Colony from various partn of Sothenst Astu and
★ the credit square,
One built the boom, the other destroyed 11,
Hundreds made and lust fo- tunes as a result of then. The losis can only console theresetve
A YEAR OF CHANGING FORTUNES
A group of investors felt the dividend should have boen higher and launched a cornering operation in the market with the object of gaining a control- ling Interest in the company to bring about Н More liberal dividend policy. 1t did nut succeed.
the
By A Special Correspondent
nows of the
heart
EXCHANGE PRICES
nino BANKS
* Bank 1169
Union
Lombard
SHIPPING
Waterboat
553 $45
23,30
DOCKS, ETC.
{Now)
19.40 1.83 1.020
A. Rubbor 1.290
10,000 m 1,975
the RUBBER
01703
UTILITIES
Tram ..... 23.00
24 783 23.70
Y'moli Fory 103 104
C. Light (0) 21.00
C. Light NĮ
Electrio
Telephone
INDUSTRIALS
Peking Radio added a little
Humphreys Business done on the Hong- more gloom with a declaration
Stock
this on Macao which caused
Exchange soma kong
Realty figure of $11,000 million on the anxiety among Chinese brokers morning amounted to $490,000.
Noon quotations and and investors, President's
At the beginning of November morning's transactions: altack.
It was estimated that the decline SHARES DUYERS SELLERS BALR) This was the second biggest in share prices from the August foll In Woll Street
history, peak levels was between There was a sharp reaction on and 27 per cent with the
Exchange. the Hongkong Stock This action was primarily The weekly market turnover Brokers said the reason for this majority, down between ten,and INSURANCES
20 per cent, was that some saw the possibl- defigned to cut down borrow-emtinued to fall, until by carly Wa
11, Uto And on November At the end of February, withing for speculative share buying September
Eisenhower 31 Wie
of President only $3.9 ty
share market received its second dividend seRRON virtually and to channel investment into million.
retiring
and from politica Share prices fell lower
a big blow. American over, lingering tears
an change in
foreign the more economically useful enter and two weeks after tho
The Hongkong and Shanghal Formosa situation caused a furprises.
restric policy in the Far East resulting Bank was to apply a new credit ther slide in share prices. There
a temporary lull in the The main reason for the Im-tions they were about eight to from the change in leadership. wus
ten per cent below their highs from $1 to 80 cents (but i had lend a maximum of 30 per cent Dairy Farm cut its dividend queeze. It disclosed in a cir- cular to clients that it would flood of scare money coming to position of the credi Hongkong. Proût-taking set In
was that the banka folt that the
The fall lasted for about made a new issue earlier of one against share securities begin- share boom could end up in a jow
three weeks
and for four) and Yacmails anning on January 1. It explained and share prices fell to a
to a month crush if there were any
wide stil.
then the market began to even Dounced a $2.50 dividend against that in the past it had been in intention of borrowCTE scale
$3 one the previous year fit the habit of lending up to 50 made a bonus issue of one for
with tho Qe operators who used to spend fuiling to meet their obligations out. But it was noticeable that
new? caused A sharp
prices. Inmediate big money buying shares downturn
had two earlier in the year). Both per cent and it was
camo as a dis-object of countering what had LAND, ETC. deserted Ice House Street.
come to be looked upon as a Ises were in the region of live
and Appointment to the market.
certainty that it had issued its Electrics Certainly And the turnover fell
October was a dull month. circular to about 30 or 40 of its per cent, from $14 million to $10.7 million possibly other "blue chips" lost
in-The turnover fluctuated between ellenta, through heavy it a week.
Over
In March. Wheelock Marden & Co. Ltd. antuneed the trans.
fer of control of onc of the Colony's oldest uuilty CON- jies, the Hongkong and China Gan Co. Ltd. from London to Hongkong, having acquí:/ 26 injority of its shares on the London market
Yauma Ferry Company with the thought that the giddynounced a final dividend of $5 pleasure of walking a tightrope | Cogatut $4 for 1003) which, lo make a tow thenisond dollnes with a $3 Interim, made $8 for
just not worth the trouble.
the
་་
YADI At the same time it dematical 14 long expected
In addition to being an elling
year for the speculatur, · bonus issue of one for two. the Investor will notice that the agregule distribution this year
(including bobur Issues and
And
dividends) was a record many shares reached new post- war peaks at the heights of the mid-your bus
In this review of the year 11
Soon after Yaumati and Star Ferry suffered a setback when Government announced that IL British expert had come to the
to
the investigate Colung feastblity of a harbour tunnel scheine.
is not possible to mentions any, And Then The Boom
share in detall.
the
The
accom-
panying table gives you on kira movement ~ nant how.
of
range
during the year
mpare, with that of 1954
{
The Year Begins
If one were able to construct graph of the market move - ments during 1985 it would look something like the one shown below
But this cannot be taken as an accurate representa- ilon
because there are un- fortunately no Indlers issued by the Stock Exchange,
the
squeeze
il
nouncement of credit
announcements
*THEIR HIGHEST AND LOWEST⋆
HK Bank
Union
HK Wharf HK Dork
Provident
HK Hotels
25.20
DO
more
Partly the aim of this move like the carller squeeze-was to channel investment into economically useful enterprises, particularly industrial develop-
on
There
WATA
130
Another the raising of the bor- rate had largely suc- in damping speculation the share market. The
situation this
to
Lombard!
1954 High $2000 57
1054 Low
December
Figh
1955
1965
December
High
Low
1955
SI675
<2000
$2200
$1530
$1753
factor:
48
50
58
49,
55
940
820
715
1070
905
935
Underwriters
9
0.65
10.00
9.30
0.80
Union Walerboat
20.60
1844
20.60
2814
19
23.30
Wheelock
Marden
8.30
6.70
7.45
10,70
6.04
5.40
85
00
8514
02
70
30
15
30
30
23.40
29.90
10
11.00
16
17.10
ILBO
15.50
10
7,80
16
20.90
14.70
19:30
17,80
weekly turnover, It will be re- called, hud fallen from a peak of $14 million late in July less than $4 million and share prices had declined by between 18 and 30 per cent.
MK Land
70
53
69
784
65
6214
Humphreys
17.30
25.20
25.60
18.40
10.70
of
BK Realty
2.30
1.00
2.176
8.575
1.05
190
UK TramN
20.90
1934
22.
26.30
19.60
23.60
Star Ferry
159
120
169
158
131
136
Yaumatis
165
134
165
191
101
103
Ch Lights (o)
18.70
13.40
18.70
2414
18.60
22.80
Far
Ch Lights (1)
15.60
10.30
16.00
19.20
1874
16.80
Electric
27.10
40
AB
40
3374
IK Telephone
3444
2314
34
3744
29
42. 334
fi. I. Cement
10.10
41
48
25.30*
28
2114
25.20
25
·
17.40
37 18.30
17.00
18
13
13.30
27.40
22.40
27.10
38
25
344
6.70
634
6.05
8.35
5.80
6.60
4.475
3.65
4.475
6.10
4.175
5.48
Textile Corp
8.20
0.35*
1.05*
6.80
5.40
5.85
Nanyang
10.40
9.40
9.90
914
7.60
7.85
*ex all price.
the
The big mid-year boom began In April. At the beginning the mouth, Unions announced a org for nine bonus issue.
about the Se tine U.S.
Mr Secretary of State
John clarifed
Forter
And
Dulles Eastern polley by indieating that there would h
automatic no committal of Amertens forvega to defence of the Nationalist- held offshore Islands. At least this was the general Interpreta- tion of his statement.
The Bandung (also known as the Afro Asian) conference followed soon after. At Ban- dung. Mr Chou En-101.
The following review attempts to be a chronological account of the main events on the share Chinese Prime Minister pro- market. But becaus L must posed talks to settle its disputes necessarily Include Important with the United States and this company news which affected move received a concillatory
reaponas by
Into
President
Einen-
Dairy Farm
A.S. Watson
Lane Crawford
Yangtaxe
Allied
19
סרי
the lowest in share market history) and $1.8 million.
At about this time there was stitutional selling ut about this, $3 million (one of a new bid to corner the market | time. In Hotel shares, Different In- terests were involved this time, These developments helped to but the object was the same.... erente a better atmosphere to force the company to pay a the share market.
bigger dividend.
either the market as a whole ne individual shares, certain details|hower. have been
the account
market
correct
very
woven
the
impetus of a flood of Irumigrant
from money Philippines and
at
or
trend in order to preserve
possible the near stence of events.
The year began with the market
undertone pitched high and
Arin. Under the
Indonesia,
the Vietnam),
share values me to
se in the highest levels for years, Cements, for example, were then selling
$42 double the peak price for 1963. In January, the Hongkong and Shanghal
announced Bank one for four bonus issue, The first ever made by the Corpo tion. Prior to that its enpital bad
four been increased in
between 1883 and 1921 stages from $5 million to $20 million. The new issue raised capital to $25 million by the creation of 40,000 shares of $125 each.
ented
1 n
on
เถ
Early in September, Development Corporation
Central paid
off its final instalment of $6.0 company nullion to the Hotel Texilles passed their dividend for the Pedder Street site. With but during the year it bought a large part of the $11 million it obtained from this sale, the building Hotel company began
land, erected more bulidinga and
A 12-storey block of service flats behind 130 Peninsula. This building was designed
an annexe to the hotel.
US
per shares
It was
with which the Bank was concerned,
while share For
hack prices fallen, yields had risen and if the market fell much farther, it was felt that shares might riso to the point where they would again become attractive invest- ments.
Sharp Criticism
their
At this stage the Bank felt, speculators might return seck- Ing overdrafts to Brance purchases. To counter a large potential
overdraft, it decided
to impose a new restriction.
On this news shares fell by as much as nine per cent and the move was sharply criticised by bankers and brokers.
But after the initial fall there was a slight recovery helped, brokers beloved, by the timely
final
revealed | announcement of
The original plan was sell only $2.6 milion,
障
In October it was
Alled dividend by China Light ((up | that Wheelock Marden,
and Investors
the Common- from 70 to 80 cents a shore).
Company. Investment
In December the market con- Another important factor
wealth owners of about 85 per cent of tinued dull but share prices April was that inward renit-
the Gas Compsty shores were began a slow climb. tances began coming in at a
The bew credit restrictions higher rate after a lull lasting increased its spindlage from
cent of the Issued Gas cut turnovers even lower and in contemplating placing about 60 over a month The somewhat 13,000 to 20,000 and the market
the market, one week business amounted to sudden resumption or renut | feeling was that the company
to tances to Hongkong was largely had consolidated its position
would The Wheelocks dividend (an the result of a politind crisis in and better results could be ex-
them at a price which
and tho cents) Salgın
There was a temporary return give a return of about seven or unchanged 78 And the share market pected in the next financial year.
September eight per cent. But the plan publication of the
accounts Rathered momentum
Star Ferry announced an un-of Interest early in in
the
of hopes
in- turnover has since been delayed and the dashed weekly changed $3.59 dividend and the when the
looking Land dividend Wis An un-climbed back to $8 million. This placement is not now expected vestors who had been
this for an interim week was also conspicuous changed $2.
year, but hopes were high that L higher final distribution might be possible.
May.
The Conservative win in the Briush General Election spurred demand for shares later in the month and another encouraging event was the release of first American prisoners Communist China.
Lethargy Sets In
for
until Inter next year.
by'
★ HOW SHARE PRICES MOVED
JAN
FED
MAR APRIL
MAY
JUNE
JULY
AUC
SEPT
ост
NOV
DIC
the
Hongkong and Kowloon Despite the encouraging effect Wharf anounced a distribution of $4 a share on the completion this announcement had on the
the
of the upswing
saic of market,
some com- Laichikok, rather abruptly an
a gradual pany property at Why?
turned but the market
uni recession began.
lethargic in June Although there was an sound expecte ance of idle money in the a sudden stoppage of funds Colony, many were reluctant to from Southeast Asla invest it in the
Lalor in the month, Hongkong market share
Agency because of the worsening of the Land and Investment situation in the Formosa Stralta. Co. Ltd announced the purchase dog of Jardhe's four-storey building There were almost daily fights between the Nationalist on the comer of Pedder Street Islands and batteries on the and Des Vocux Road for $6 Communist mainland and there
million. At the one time, the were widespread feare, follow- Land company announced a new ing the Communist invasion and Issue of 200,000 shares, one for
five at capture of Yiklangshan, that a
$25
the major clash might occur.
Formosa Fears
At about this time, it was disclosed that Mr G. E. Marden
And at about this time reported loan repayments from Japan to Wheelock Marden were attracting considerable in terest in Ice House Street and the shares made a good rise,
had discussed with Government In July the boom mounted
* 24 million harbour bridge spectacularly with a resumption
The nows,
to
1dle money Hoods market
Higher dividend hopea eend market up
and
their
In
Formate flare-up fears and market down
however, had of inward remittances Hittle
shares many shares rose effect on ferry
other which, with
utlilties, highest levels of the year. suffered propertionately smaller this month the inflow of money losses than the rest of the to the Colony was described 03 market. It was noted that there
here "substantial"
was ittle eciling pressure, The market was rising at such
merely a reluctance to buy on
the same expansivo ́scale as at
February.
drale, that Banks put on $50 in
one week. A number of other
Duties clarifies V.S. Far East policy: Bandung conference and prace moves by Chou Enlais | market rises
Peak than credit squaesu 1
Tories win General Election Lo U.K.. and China relunsun U.S. prisoners
Inward remittances gather momentum
Formoes tears again depression
cause
had to $10.70.
Idle money diverted to land and tradà: mèney inflow falls sharply
Temporary recovery followed by Nav York crash
Credit squeeze li
caused by Faking
New tenglans
Substantial remist- saces from South- ast Asia
dividend
And the market closed on a
firm and steady note with shiro values
approximately eight to 25 per cent below the year's highs.
The prospects for 1956 are, at this stage, rather hazy. But the prediction made by brokers earlier this month was that it would be a slow gradual re- weeks. covery for the first few
Hongkong is unlikely to sco such
tremendous Influx of Southeast money from
Asla next year because most South- oast Aslan countries have taken steps during the year to stop flights of capital.
This fret together with the existing credit restrictions (wirel may be applied with varying in-
next year as the stag deanands) rather suggests that the share market in 1950 is going to look rather tame by the side of this year's market Some To Watch
which
In this event, it is hard to sav will be class of shares
AB most favoured.
always, "blue chips"" will be popular at level. With the contintBeck- Improvement in the Colony's trado, whart and dock and
any
Sharan bagim
particularly
Provid
should do better. And If
In October, also,
the
ther
K. Wharf Dock
Provident (01) Wheelbek
Boop a k
Comont
Hope
STORIS, ETC.
Dairy
..... 309
500
17
19149.70 000
Watson
10.40 10,70
11.30 846 2009 De 0.40
500 11.3
COTTONS
Taxlites
.. 30 50.75 1200 30
2750 or 3014
ank Hotel 17 17,70 1900 Vi
K Land
{R}
術
04 1100
3,30 5.00 3000 1.7...
MISCELLANEOUS
Yangtze Allied
0.10
DAS 0.00 100 in 500
P&O B.I. E&A
COMPANIES
PENINSULAR & ORIENTAL SIN. CO.
PASSENGER/FREIGHT SERVICE
Outwards "CARTHAGE” "CHUSAN" "CORFU" "CANTON"
Leaves London
Salled
Due Jongkong
9th January
14th January
3th January
7th February
1 February 3th March
Via Southampton, Port Said, Ada, Bombay, Colombo, Penang & Singapore
Homewards
Leaves Hongkong Dus London "CARTHAGE" 13th JUBUKIY
"CHUSAN"
"CORFU"
"CANTON"
30th January
10th February
9th March
13th February
27th February
12th March
Oth April
Via Singaporo, Feonas, Colombo, Bombay, Aden,
Port Bald & London
* Also Calle Mareuilles.
from UK.
FREIGHT SERVICE
ard Jan aalis 6th Jan.
loada 8th Jan,
"SINGAPORE” due
"SOMALI"
for Japan
for S'pore. P. Swetten- hmm. Penang. Aden. Port Sald, Genoa, Mar- satiles, Havre, London. Hamburg. Rotterdam & Antwerp
With liberty to call at Belawan before or after Straits Ports and at Bombay if inducement offers.
Tanks available for carriage of Oll in Bulk.' Space for refrigerated cargo. Limited Passenger accommodation
BRITISH INDIA S.N. CO., LTD.
"SIRDHANA" walls
"WARORA"
"SANTHIA”
9th Jan.
Chit-
for Singapore, Penang & Calcutta
Singapore, BAZEN 18h Jon, for
tagong & Bangoon dine 18th Jan, from Calcutis, Ranguon
& Strails sa posh Jan., for Japan
P. & O./B. I. JOINT SERVICE
"OZARDA"
"URLANA”
"ITOLA"
"ITAURA"
due 30th Dec. from Bombay sails at Dec. 1onds Jrd Jan,
S'pore,
for Japan
BOMBAY. for
Karachi, Basrab, Klor- ramshahr & Kuwali
ipads 5th Jan. for Bingapore, Madra,
BOMBAY, Karachi, B rah, Khorramshahr Kuwait
londe 24th Jan, for Singapore, Colomba, Karachi, Basrah, Khar- remahar & Kuwait-
EASTERN & AUSTRALIAN S.S. CO., LTD.
8th Jon “ARAFURA”. due'
maile Bih Jan. "EASTERN" loads 0/7th Jan.
from Australia for Japan for Sandakan, BABAUL, Brisbane, Sydney, Mel- bane & Adelaide.
All vessels have liberty to call at any poris on or off the route & the route 4) sailing are subject to change or amendment with or without notion,
For full particulars apply to:- MACKINNON, MACKENZIE & CO. OF HONG KONG LTD. Telephone Nos. 27721-4.
MESSAGERIES MARITIMES
vity in land investment falle and it is difficult to see it keep Ling up at the present lovel Wheelock | throughout
Jand year the beginning of the year and shares showed rises of almost In August, also, Hongkong the rise in Wheelook Mardens
some of their It announced
The Improvement | Mardens enjoyed a new burst shares may lose $2 a week and the weekly turn-Electric the end of 1904.
of a attraction, on hopes Doubt and four over the over climbed to $14 million. awarded the contract for the continued the next week whon of activity
But for the investor there is Formosa situation and. the Optimism
over the Geneva construction of its new genera the turnover rose to $9.8 million dividend increase.
Govern evacuation of the Tachen, islands "umunit" conference WAR
to anting station at North Point
In this month, the
But Wheelocks performance market at the moment, at continued to dominate the added spur to investment. And the English Electric Co. Lid.ment released the expert's
bargain Prices and offering market
initial But at about this time there was a The value of the
con-port on the harbour tunnel plan. was a "solo" effort. It had the the umber at goo2 shares on: towards tho middle of the growing feeling in the market tract was about $25 million, The (it has since been sent to an spotlight to itself. For in the fairly high yields. Textiles and month, share prices began to that the Government would not company boped that the new expert committee for investiga-weeks following the first fastal. Nanyangs may be worth watch- next year, particularly the pick up again with a number of proceed with the tunnel scheme plant would be in commission tion) and on the strength of ment of the credit squeeze, the
former in view of the expan dividend announcements in the and Star Ferry and Yaumati early in 1959 and the project as this news Yautnall shares slippattern of investment in
Colóny had changed. ̧*\
that has taken place. offing.
- were slightly more active.
whole, it felt,
Mardeng at their One point the Green Island · Coment......... Quite suddenly the blow fell. capable of
En-
Speculators switched their Wheelock
booming present rates are a good buy. nounced an increase in its dig- And it came in the Inst para requirements of the island for was, that as the plan envisaged millions, to another
Also
any the exception of VIETNAM of the Abluodi tribution-from $2 in 1963 to graph of an almost Insignificant the next 20 years.
A purely vehiculiar tamnet, exist market, land, and much more
with 82.50 with a $1:50 bornia, and a | antiquncement ... by the Colony's |." -
ing ferry services should not be was going into trade. expansion.
would one for two bonus Isso for leading Brities banks.
expected With Fluids at four, Ave and kix the ferry companies
· 1954. Soon after, this,"
Government's "CAMBODGE" attention
in August. that these would continue to be per cent there was little interest profer to hear.
"LAOS" Providens announced its bonus and Shanghal, the Chartered This time when rumours Begon used to capacity. But this rider, in the share market. And banks decision on the urinel Arst,
These sharts I hope to deal Tiene (one for tout) and the and the Merantile-announced circulating that the Coral gave litio consolation to share were chiding winteror a laid
Corporation war Hotel Company, they were talking interest rates Development
mondy vitáty has availablete with In my reports In 1950 having
London
to get the benent of the year of the monkey in the maat of $111. million for the sale one and three per ocat's yest ment: 11 months ahead of time." was shortlived
discoring rates and the Chinese candaragangan "MONKAY" of its Pekler Streat silo, bald ein as attempt to curts in Conflicting - rumours figiemused 24, the New York mark
menty market. Abo="remti- *One can only tippa: this dous "DONAI“ dollar dividend. Instead of 66 fufionary tendencies in the fluctuations between: $1935 anded and the low
day tances from Boulterst Amin ruta formiddow a year or cents. In the vrevious year. S
amian antics $10.00 onono days!
wing were now only "irisiding in
I
China The
Big
should boped $2 to 8117port mado
meeting the power
Three the Hongkong movie were attracting anécted & and I was?
De Han recaived (in ́dret Instal- | on some indivancés- by: Berpeen.} about, to bay of lithawn Klein Böptember
Colony's coonomy.
amounted
on
f
110
PO. Box 63 glQueen" Building ment
FAST PASSENGER/FREIGHT SERVICE
Feb. 2518
FREIGHT
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