Discounter issues continue retreat; index drops 34 points - Discount Store News Index, discount store stocks

Discount Store News, Jan 8, 1990

Discounter Issues Continue Retreat; Index Drops 34 Points

NEW YORK -- Discount issues took a pounding in relation to stocks as a whole for the two weeks ended Dec. 15.

The DSN index slumped 2.16 percent, or 34.26 points, to 1,555.32.

In comparison, the Dow Jones Industrial Average dipped 0.29 percent, or 8.1 points, to 2,739.55, while Standard & Poor's 500-Stock Index also slipped fractionally by 0.14 percent, or 0.49 points, to 305.14.

The New York Stock Exchange Deposit dipped the least of four major indexes, closing down 0.11 percent, or 0.21 points, to 193.45 points.

The Value Line Index, the most broadly based of the four, fell 1.27 percent, or 3.31 points, to 256.62.

Declining issues outpaced gainers 33 to 20, while stocks closed unchanged.

Eight issues sank to new 52-week lows during the two weeks, while two peaked at new highs.

S.E. Nichols logged the largest percentage loss at it continued to close money-losing stores in attempts to restore profitability. Nichols declined 16.62 percent, or 19 cents, to close at 94 cents, accounting for one of the eight new lows.

Melville Corporation, parent of Marshall's and Kay-Bee Toys, recorded the largest dollar loss, shedding $3.88, or 8.45 percent, to $42.

Home Shopping Network showed the largest percentage gain, rising 12.96 percent, or 88 cents, to close at a new high of $7.63.

F.W. Woolworth, parent of specialty chains such as Champs Sporting Goods, enjoyed the largest dollar gain, adding $1.25, or 2.01 percent, to $63.88.

Wal-Mart accounted for the other new high, peaking at a 52-week high of $44.88 before closing at $44. Despite having reached a new high, Wal-Mart closed down 75 cents, or 1.68 percent, for the period.

Waban, the BJ's Wholesale Club and HomeClub division of the old Zayre Corp, accounted for another of the new lows, slipping 38 cents, or 3.23 percent, to $11.25. When Zayre spun its warehouse clubs off to stockholders as an independent entity last June--and then changed its name to TJX Cos.--the market valued Waban stock at $18 and it subsequently rose to $20 before starting to decline. TJX itself, lost 63 cents, or 4.04 percent, to $14.88.