DSN stock index climbs 3.33%, Dow edges up 0.47% - Discount Store News Index

Discount Store News, April 23, 1990

DSN Stock Index Climbs 3.33%, Dow Edges Up 0.47%

NEW YORK -- The DSN Index recorded a solid, 3.33 percent gain in the two weeks ended April 6, compared with gains of less than one percentage point in broader based indexes.

Discounter issues rose 52.97 points to close at 1,641.96.

In comparison, The Dow Jones industrial average gained 0.47 percent, or 12.84 points, to 2,717.12.

Standard & Poor's 500-Stock Index, increased by 0.87 percent, or 2.86 points, to close at 340.08. The New York Stock Exchange Composite added 0.72 percent, or 1.33 points, to 186.78.

In contrast, the Value Line Index, the broadest based indicator of all, lost 0.71 percent, or 1.72 points, to 242.12.

Eight issues peaked at new highs during the period, three dipped to new lows and nine closed unchanged.

The largest dollar gainer was Melville, parent of Marshalls and Kay-Bee Toys, which tacked on $3, or 6.47 percent, to $49.38.

On the downside, QVC Network, was the largest dollar loser, shedding $2.75, or 17.74 percent, to $12.75. Price Company also lost $2.75, or 6.88 percent, to close at $37.25.

Pic `n Save, the closeout chain, logged the largest percentage gain, rising 20.69 percent, or $2.25, to $13.12.

Ames accounted for the largest percentage loss, falling 28.21 percent, or $1.38, to close April 6 at a new low of $3.50. That contrasts with its 52-week high of $20.

On the heels of its announcement April 10 that it is closing 74 more of its former Zayre stores and expects to report a loss of $228 million for 1989, Ames stock slipped still further, losing 88 cents to close at another low of $2.38. In 1987, Ames stock traded at almost $30.

Once profitable, Ames has been unable to turn around the money losing Zayre chain it acquired in October 1988 for about $800 million. After the latest round of closings, Ames will be left with only 200 of the 388 Zayre units it acquired.

In sharp contrast, Wal-Mart continued its course as the crown prince of discounting, closing at a new high of $48.38, for a gain of $1.88, or 4.03 percent.