Dow Jones level highest for a year

Press, 1 September 1982, Page 23

Dow Jones level highest for a year

PA New York A late rally by blue chip stocks yesterday carried the New York Stock Exchange to its highest level in more than a year, although the volume of trading eased off from its hectic pace of the past two wedks. After dropping almost eight points in morning trading. the Dow Jones Industrial Average changed course in mid-afternoon and closed 9.83 points up at 893.30. This marked its highest level since August 26 last year, when it stood at 899.26. Advances barely edged out declines, however, by 781 to 770, as volume eased to a modest 59.6 million shares from 74.4 million on Friday. Analysts attributed the market s early weakness to a combination of profit-taking and concerns about the short-term outlook for interest rates and the economy.

The market was also experiencing a period of adjustment after its record-break-ing two-week rally, analysts

added. Since August 12. when the market hit its low for the year, the Dow Jones average has gained more than 116 points. Volume has been running at record levels, last week averaging more than 109 million shares a dav.

Hildegarde ZagorskL of Bache Group Inc., said that the market might continue a see-saw pattern for the next few days. “Both the bond and stock markets are going through a period of consolidation as they digest their recent gains." she said.

However. she added: "There are still a lot of cash heavy institutions waiting on the sidelies and they started jumping into the' market when prices came down." The blue chip issues were the most active stocks and also some of the best gainers in the market, signalling heavy trading by institutional investors.

London and Hong Kong exchanges were closed for August Bank holidays.