1933-01-05 — Page 13

TRADE

The Share Market In Hong Kong

HONG KONG DAILY PRESS THURSDAY, JANUARY

SUPPLEMENT (Continued)

CONFIDENCE SHAKEN DURING 1932:

The sharemarket, taken as-a-whale,-during-this-past-year, has been fairly good. At the vorty commencement of the year, the demand for all stocks, both speculative and investment, was-on a fairly liberal scale which has nearly always been the case on the commencement of business in the early days of the year, writes a leading broker in the City."

..

Bates had a nasty setback towards the end of January ewing to the serious Sina-Japanese clash in Shanghai which brought practically everything to a standstill for a good, few węcka,

BAN ON FORWARD BUSINESS

The political outlook then was very uncertain, with a lot of bons fide investors deciding to hold off until the position was a bit clear

l.

In the early months there was a lot of loose money available for solid vestiments due to the big majority of companies paying their dividends during the first three months of the year and a lot of this money was re-invested in stocks such as Hong Kong Blanks and Unions. Although the War clouds seem to have now definitely disappeared, confidence has not yet been restored.

During the summer months. with the exception of a couple of spurts in speculative stocks, rates have not Leen maintained and, the market. continued to sag throughout the

year.

Overdone."

I

it is only natural to find persons looking for employment for their money in the hope of increasing their capital. Anything, that "can afford a reasonable rate of interest is sure to attract.

NEW YORK STOCK MARKET

DULL DURING LAST THREE MONTHS

Textile Market Report For 1932

EXCEPTIONALLY DIFFICULT YEAR

i

in the opinion of most importers, it is the worst piece goods year to date, Approximately thirty deals orq: have already gone bankrupt and it is estimated that the bank- rupt cargo and/or cargo carried over for next season is in the

Wall Street has had to endure The year opened with exceḥation- some of its "dullest days during the ally heavy arrivals of Spring Fans past three months. Trading hascies which were contracted for in been very light mostly below mil July/August September, 1933 at an lion-share days, and purely profesaverage axchange rate of 1/- which sional. Early in November, a meant that they arrived at appro Democratio Victory, which had beenximately 25 to 30 per cent above previously discounted, had the effect replacing value-a particularly unnoighbourhood of 7,000 to 8,000 of an immediate sharp decline, folhealthy position in any market. lowed by a great show of strength and vigorous advances were made by the leading securities..

-Increasing indecision in Stock prices, was the feature of the Mar ket during the second part of November, but, on the whole, the market has held up reasonably well under unfavourable political and economic news. From a technical standpoint the most interesting fen ture of the market's action has been its extrema dulinese due to the une willingness of Traders and Investors to take positive positions.

Tmpossible to sea Ahand,

In addition, the market was over bought. During the latter part of -2, 1930 and the major portion of 1931, when the exchange value of the Hong Kong dollar was steadily falling, local deniers had been per ticularly fortunate in being able to increase.considerably their export trade to neighbouring countries working on a gold basis. Possibly, when ordering in 1991, local dealers worked on the assumption that after they had settled their 1832 requirements at 1/ the local dollar would again, conveniently To forecast the future is very The slow pace of trade improve-fall to new record low levels. It is difficult and although the bears ment, weakness in Commodity difficult to conceive any other rea- have had a long innings in 1932, it prices and the unpredictables of son why dealers, some of very would not be surprising to see the Politics have all combined to deaden doubtful standing, should order a bulls have their innings next. public enthusiasm for speculation total of something like 20,000 cases There is no doubt that as soon as Quict trading, in December, has of Manchester goods when a per- the two exchanges are satisfied that been accompanied by irregularity in mal off-take for this market is the demand is on an extensive scale price movements, reflecting the much nearer 10,000 cases. It is once again that the ban on for-swift shifts in day-to-day positions equally difficult to understand why ward business will immediately be of professionals in response to local merchants accepted the busi- raised

passing speculative atrawɛ. Inness The fact remains, however, other words the market, at the that the only possible chance of present time, seems unable to ap disposing of all the goods during praise the busingas outlook for the the Spring senson was substans near future, It is merely judging in fall in the dollar below 1/ dally developments without at- tempting to pass final judgment. Improvement is bound to be slow, halting and irregular, controlled by the progress of business, in which politics constitute only a single

Little Busineas with Shanghai.

There has only beer,vy united business done between Hong Kong and Shanghai during the past year, the reason being that Speculation was fairly rife dur- the political situation. ch was ing the latter part of the year and bad at the beginning of the year the bear element appeared far and remained doubtful for a very Bruger than the bulli. Things long time. Another serious factor were beginning to look overdone against speculating in Shanghai element. during the months of December shares by Hong Kong is the ex- and the Committees of the Hong change which has been so uncersponsible for the recent decline in Kong Stock Exchange and the tain during the past year. Hong Kong Sharobrokers Associa- tion decided that it would be better

in the interest of all concerned to temporarily suspend all forward transactions and on and after Settlement Day in January, 193 10 forward business will be accept ed. In other words all transactions after that date will have to be for rash only,

**

.

Stock prices, are the extreme weak ness in Steel production which has The outstanding stocks which all the appearances of receding to have suffered the most in the way new low coupled with apprehen- of rates this year are Hotels, sion over the Railroad. situation China Lights, Cements, Ropes, where several Companies have to Realties and Underwriters These face receivership this year, stocks are classed under the head- ing of speculative countors" and it must be said that they were un doubtedly standing quite high at the beginning of the year and it is not surprising that they have gru dually come down to a level more commensurate with the dividend which they are paying.

This fearless decision on the part of the Committees of the two ex changes had the desired effect to prevent the continued downward slide in rates. It must be agreed that a good number of speculative Comparing the rates early this stocks at present had passed be year as against present ratca, yond the limit of being called in stocks such as Lands, Wharver, vestments and at the present levels, Ferrien, Electrics, Trams, which many Hong Kong shares offer has been looked upon na "gilt both the speculating and investing lodged" have hardly fluctuated to public decent returns on their any extent.

money.

a

A Safe Level. To a great extent the bear move- ment has done a lot of good to the share market as it has brought prices down to a safe level.

the

At the close of the pen demand appears to be quite heavy

for

..

Artificial: Stimulation. Actually, the Hong Kong dollar auctuated between 1/3 and 1/6d during the delivery season, preciation in its value being due

the ap

.000

Weekly Sailings Trauspacific

To San Francisco,- Los Angeles & New York

viaPanama

Fortnightly anilings on-

From, Wilson)

Prex Hoover actions Pres. Jackron res Pres MoKinley Pres. Grant

Seattle Victoria.

Prem

„Préz, Clévolaïd

15

Pres. Madison

18

"ROUND: TRIP FARES TO EUROPE & AMERICAN Special through ratas to Europe via United States. Direct connections with all Atlantic linen......... Choics of rail lines serosE United States and Canada, - Überal stop-over, privileges for Bight-seeing. Full particulars upon application.

CHSCS. The majority of this will have, to be disposed of quickly and it is difficult to see with this hugo carry-over bow it is going to be (possible to make any profit on the 1002 arrivals which although amall could, with advantage, have been smaller. Unleas a uning change Fortnightly via Suez to Europe & America in conditions takes place, a loss of 20 per cent or more is almost in- evitable on the 1908 carry-over,

This state of affaire applica, perhaps in even more marked degree, to heavy cottons, woollens and worsted for the Autuma and Winter season, although the quan- fities involved are appreciably less. The heavy carryover from the 1931 scason was brought forward to this year, and the prices at which those goods were disposed of so seriously interfered with new arrivals that very few of the new lines show even a fractional margin of profit.

The Boycott,

The anti-Japanese boycott helped nobody. It certainly gaye a fillip to a few lines of Lancashire staples

Fo tnightly sailings on Saturdays via Manila, Straffa Colombo, Bombay, Suez Canal, Alexandria, Naples): Ganos,” Marsellies. New York and Boston.

Pres. Van Buren Pres. Garfield

TO

Next Sailing....

Pres. Wilson Pros, Cleveland

Janie Pres.- Hoover Jan. 1911 Pres. Adams,

MANILA

Pres. Van Buren Jan. 7, 8 a.m.

Jan. 10 - Pres. Garfeld

Jan. 14 Pres, Hoover mentis

Jan. 21

Connecting with 8.8. MATON TO ORBU, ILOILO, ZAMBOANGA.

DOLLAR STEAMSHIP LINES AMERICAN MAIL LINE

CANTON BEANCH SHAKER: STREETS

PACIFIC ORIENTAL MONTHLY CARGO AND PASSENGER SERVICE

M.S. "JUTLANDIA" Sailing on or about 17th JAN.

CARGO AND PASSENGERS ACCEPTED FOR SHANGHAI, SAN FRANCISCO, VANCOUVER, SEATTLE, PORTLAND, ETO. THROUGH BILLS OF LADING ISSUE TO OVERLAND POINTS

but in the main this was more biu offset by the embarrassment of dealers carrying heavy stocks of Japanese goods whose resources and ability to buy or clear any thing else were adversely affected.

During the major portion of the to the abandonment by Great BriYear, revised contract terms be Two very important factors, retain of the gold standard. This, tween importers and dealers in in the first place, put a stop to the Hong Kong have been under dis artificially stimulated export trade cussion Final agreement with the with neighbouring gold currency Chinese Piece Goods Guild has yet↑ " countries no threw several thou to be arrived at and the terms of and additional cases on to the such revisions as are agreed upon South China market, which was incorporated (with the consent of Manchester and Bradford) into the already handsomely catered for.

standard contract between sup To make matters worse, Manches,pliers and importers. The matter Mare immediately, the Marketler firms were late with a large is therefore outside the scope, of promises to continue sensitive to percentage of their cargo and, un this review though it may be re- carngs reports, dividend changes der contract terms with importer marked that it seems a pity that and a definite improvement in

dealers were only too pleased to some of the responsibility which is Commodity prices. Third-quarter cancel. Importers, however, were shouldered by importers_bers statements disclosed, in the in faced with two very unpleasant should not be shared by European stance of many Corporations, alternatives. For security's sake, exporters. It is hardly reasonable

they almost invariably close ex that merchants here. should be sub change at the time of booking an ject to exchange losses of anything order, and although they also had up to 40 per cent whon such loss the option of cancelling, under are solely cocasioned by non-fulfil- their contract terms with Man-ment of contracts or late arrival of |||JOHN MANNERS CO., LTD. chester shippers, the majority of goods from Europe, importers preferred, to take deli- very in the hope that the loss in- curred in sale would be less than the exchange loss of from 30 to 40 per cent which would result from cancellation. This hope was not realised, the decline in local prices being approximately the sarde ns the difference in exchange between booking and arrival dates.

THE DOLLAR

The following table will show how the Hong Kong dollar has Auctuated during the year. The Mining: A little business was. T. rate in sterling on the first dona in Raubs with "Singapore business day of each month is during the year and a fair business given below:- was done in Venezuelan Goldfields, but the volume of business nego- inted was practically negligible.

Ice House Street.

Jacnary February March April

.1/51d.

.1/bd.

../old.

1/3ld.

May

.1/928.

June

I/2jd.

July

1/30.

August

.1/ajd.

"September

1/41d.

October

1/2ld

November

174jd.

December

1/4d...

During the year, the familiar. investment and speculative block in Ice, House Street, that stocks, particularly the latter and housed the Hong Kong Sharo if this condition prevails during

brokers, Association and once the next few weeks, confidenco in housed the Hong Kong Stock Ex- the Hong Kong share market is change, was pulled down. In its sure to be restored and with plenty place the new Hong Kong Stock of money available at low interest, Exchange will be put up, a coupled with the millions of doli modern structure with office accom lars that will be paid out in divid, medation for all its members. The ends, it would not be surprising Hong Kong Sharebrokers' Associa-woeful deficiency of earning power to see a little flutter in the local

tion will be putting up their new with which to support current Mar- market in the early part of 1933.

building early this year on the site ket Values, despite the upturn in While business may be bad in that was lately vacated by the Sales totals of recent months. This other directions, people, generally, Tsang Fook Piano Company and forcefully illustrated in the case.

not content to leave their they also will be putting up an im- of the Rail Group where an extra money in the banks with no inter-plaing structure of, I understand, seasonal rise in traffic still leaves cat, or practically no interest, and seven stories.

many Companies not earning fired oharges.

ere

COAL MARKET

SOME FIGURES OF LOCAL IMPORTATIONS

JAPANESE COAL AND CANTON BOYCOTT

Generally speaking, the coal busi ness in Hong Kong has met with a poor year in 1982, and business was nod as antisfactory as it might have| been, especially for Japanese coal, which owing to the boycott could not be shipped to Canton, *----

From the table attached below it will be seen that wheresa Japanese Coal imported into Hong Kong ia

New Year's Prospects."

As regards prospects for 1833, ib ze in the interests of dealers and merchants that every possible on- deavour should be made to liqui date both old and new cargo to gether and that heavy under-sell ing to clear stocks should be avoid- ed. Given co-operation along these lines, it is quite possible that by the end of 1933 the position will All these factors combined to be completely cleared up and that make 1932 a most disastrous year the market will be ready for for piece goods importers; in fact.healthy, business.

-A Bad Year.

JAPANESE BUSINESS AT STANDSTILL

DEALERS" : PESSIMISTIC REPORT

WOOLLEN GOODS

HEAVY DROP IN PRICES

Excellent Passenger Accommodation at very Moderate Rates. For Freight and Pastage, sto, please Apply tor

THE CHINESE AMERICAN SHIPPING COMPANY

THE EAST ASIATIC CO., LTD.

Agenta e

Office / Marcantile Bank BUILDING (3C2

"LELEPHONE

8.84071.

FIRECRACKERS

MACHINE MADE ARTICLE NOW WANTED

"

EXPORT FIGURES TO

UNITED STATES

Agent: HOSG SLING

7 QUEEN'S RD., CENTRAL

WOOD OL

LOWEST PRICE. TOUCHED IN RECENT YEARS

FOUR CENTS PER POUND

A dealer in wood oil, writing on the local business during the your This specialized trade is becom- states: Prices for wood 011 ing difficult on account of a great have kept in good balance all the er variety of manufactured grades: year and excepting for the mater! in containers and in paper shellgal decline in prices towards the states a leading firm dealing with past month or so the stab the export of firecrackers, but the be regarded favoura American business is still obtain with past year. A dealer in woollen goods, ¦ able to a large extent for those who a slight falli summarising the year's business | cutz sell goods on domestic letters of oil expor states

of credit and on trade accep- ing with About eighty to ninety percent tances".

other hand It appears that English piece of dealers in woollens have suffered

show a marked; goods, writes a dealer in that a loss during the year. The nocu- "Owing to the Presidential elec- Getting Down to Reality. line, ordered for arrival in Hong mulative stock carried over from tion im November last, the pro Approximately 1,500 Many industrial Corporations Kong in January 1932 are esti last year was very heavy and spective buyers in U.S.A. have were shipped in 1942 to

and against 800 tons view. Borneo and Kaiping Coal similarly lack the earning power to mated at about 84,500,000 against prices have dropped from twenty postponed their purchases found a ready market in Canton, carry the existing burden of fixed approximately. 88,500,000 Iset year.to forty per cent.

therefore shipments from Hong ments to United Stater the respective figures being 113,000 charges Exemplification of this is what seemed to have retarded the The reasons for the heavy drop Kong will be made after the 2,700 tons during the

Chinese new year."/

in 1831 the exports exceeded 13,000 tons and 125,000 tons, which showed appabont in the trend toward writ trade was that at the time of in price may be traced to; first, Chinese increases of 01,000 and 48,000 tonsing off property values for the pur- placing orders, the price of cotton the Canton Government is exervis What was predicted last year)

posa of reducing depreciation and was advancing. Moreover, this Ing greater vigilance over smug has tairied out to be true. The The depreciation obsolescence charges and thus in year the dealers were not booking gling between Hong Kong and the leading manufacturer owing to metal and its From September to October, the crossing the amount available for as early as they used to do that interior. We are given to under heavy taxation, and insecurity in Japanese freight market improved dividends. It is not improbable is to say as a rule, orders would stand that lighter craft are used Chins have since removed to Macso very slightly on account of layout that this development will gather be placed three months earlier these days to patrol the rivers and where there are now three now antispations able exports and ec the Japanese momentum as more and more Instand, this year, everything was search for smugglergy decondly the factories

CA

UBNCT Coal market experienced a little managements come to the realiza left to almost the end of the sen tariff is far too high to encourage

bor bulk dificulty in securing coal steamer i tion that book values pre no longer son. Then, ton, there was a rather chamel of distributing goods in-

Coast While for Hongkong. The coal market truly representative of present day, heavy-accumulated stock amount to the. interior. In addition to

fcedented, there is expected to improve slightly in or prospective future, replacements ing to about $1,500,000 worth-As these handicaps, there is the heavy The projected factory at Ngan-hals upon the coming year,

costs. The pace of business a result, prices for cotton goods deprecation of Chingon silver shivan, in Kowloon peninsula, will ded covery, although assured, does not slumped by more than twenty per coin to be taken into account,ibly be the mans of diverting e | promise to be swift andugh to afford cent and cotton goods arriving this. The

the relief that would permit ignor-, spring, suffered a lom om dooount of forta ing the problem arising from exces the ly depressed conditions the kive debt and decimated earning in the loc powers para N

over: 1031.

IMPORT OF COAL TO HONG. KONG AND CANTON,

DURING 1832

Atill quite heavy and is far and Japan Coal above ahead of other coal, the ship: Formosna 177 ment to Canton, during the year North Chin was reduced to nothing. Indian Kaiping Coal also shoved great improve- Tonkain ment ordnat year's figurce and Bordos 187,000, tons was shipped into Hong India kong, representing 88,000 tons more sthan in 1071; had 123,000 tons ship "ped to, Danton whic

increase Austr

OL 98,000 over, 1931. The con Native sumption of native · 6061-

Centon Frew-from- 20,000.itonsti 20.000 during the year under a

Hongkong. Canton."

tons - tons 308,000 109,000

19,000 106,000 $125,000 150,000 7107,000", 0,000 110,000

7,000 32 128,000 +40,000-**** 3,000-

10,000

0,000

The show of relative stability of the market and the fact that poll-- tical and industrial news have in- duced no real liquidation of stocks, jir er sign of encouragement to traders, and holds put hopes of a recovery which should be aided father than hindered by incr

Glove

In previous Yarapan

imported into mounted!

Kong

$20,00,000,

confl

Bince the

De Kowloon Enterprise,

this combination of un

elroumstances,

+his gromising and lucrat

wer

TORE to this Colony! If the promo

pince

busine

türk of the: soheme will only real

the ad

ers by

tha mo

throu

vaines par United

the