WALL STREET LAST WEEK

Press, Volume CXVI, Issue 34048, 12 January 1976, Page 11

WALL STREET LAST WEEK

Market begins firmly

Like its Australian and j New Zealand counterparts,: the Wall Street stockmarket began the year on an optimistic note last week. The Dow Jones industrial average closed on Friday at 911.13 points, for a gain of 52.42 points on the week. Investors said trading was theheaviest since the boomj rally during the first fewmonths of last year. Trading began on a firm note, but no single news development accounted for the surge of optimism. Brokers said that investors felt the market had not kept pace with the pick-up in the economy, however sluggish the recovery might appear. Also a weight had been lifted off the market with the finish of tax selling at the end of December. On Wednesday, turnover on the New York Stock Exchange reached 33.2 m shares, the third largest total on record. The market reacted enthusiasticallv to a prime cut rate by the'Cleveland Trust Company, and late December sales gains by car manufacturers, which confirmed the recent rise in business in that industry. The market continued to firm on Thursday, despite periodic profit-taking. Investors were heartened by signs that interest rates were falling, as the Chase Manhattan Bank and a few other banks cut their prime lending rates. Profi t-taking became: stronger on Friday, despite a: report that the Government’s I wholesale price index had: fallen 0.4 per cent in December, and other major banks had joined in a prime rate reduction. Closing prices on Friday of a selection of issues were:Allied Chein., 37; ATT. 52* Anaconda, 17g; Beth. Steel’ 36: Chrysler. 12j: Colgate, 292: Dupont, 137 J; East. Kodak. 1093Englehard 24; Ford. 465; G.M.C 60.;; Goodyear, 23; IBM. 2311; IH 24J; Inco., 265; Kraft. 43J; Martin: mart-, 161; Reynolds, 26; Texas Gull. 30’,; UniCarblde, 652; U.S. Steel, 71; West. Elec, I4Z-.' Wwths. 23J. ”!