Honolulu Star-Bulletin from Honolulu, Hawaii • 44

INDEX OF LEADING INDICATORS FOR HAWAII Stocks Churn in Heavy Trading JAM AKV l'77ui) 1 New York Stock Exchange Wednesday, March 12 Dow Jones Industrials 1,745.45 0.60 Composite 500 232.85 0.85 Ml) 1 I-npi A ll(lssit)N i.io I I If I 1 I I I i I 1 vl' 80- i I cent advances, analysts said. Some traders were discour-; aged by the level of an Interest rate on overnight loans between I banks, which might mean the Federal Reserve Board is man- taming its grip on credit avail- ability, analysts said. The federal funds rate rose to 7 15-16 from 7 9-16 late yester- day. This is the interest paid on funds banks lend each other overnight to satisfy federal re-; serve requirements. Following the Fed's half point cut in its discount rate to 7 per- cent last week, it was hoped that the central bank would demon- strate its desire to make more credit available in the banking; system so that banks could lend more freely to businesses and consumers, spurring economic growth.

I THE YIELD ON the Treasury's 30-year bond edged up to 7.94 percent from 7.9 percent late yesterday. The price of the bond slid about $5 for each $1,000 in face amount In the secondary market for Treasury securities, prices of short-term governments fell Up 1128 i 7 1 I i 70 4- NEW YORK (AP) The stock market finished mixed in very heavy trading today, faced with periodic waves of profit-taking after yesterday's near-record rise. The Dow Jones average of 30 industrials, up about 18 points at midday, finished with a 0.60 loss at 1,745.45. But advancing issues outnumbered declines by about 7 to 4 on the New York Stock Exchange. Big Board volume totaled 210.25 million shares, up sharply from 187.27 million yesterday and the heaviest total since a record 236.57 million changed hands on Aug.

3, 1984. The NYSE's composite index rose 0.59 to 134.17. At the American Stock Exchange, the market value index lumped 3.41 to 267.56. THE BUYING SPREE yesterday was attributed in large measure to the steep drop in interest rates of late. Today, however, rates moved back up a bit as bond traders cashed in some profits.

Analysts said some stock-market participants were also proceeding a little more cautiously. They said the rapid rise in stock prices since last fall had created a strong temptation for investors to take their profits out of the market. Nevertheless, brokers noted that many people In the financial world believe the combination of little inflation and interest rates at their lowest levels since the 1970s holds out bright prospects for the economy and corporate profits In the months ahead. ENERGY STOCKS continued to show strength as prices of crude oil futures rebounded from their recent slide. Exxon rose 1V to 554: Chevron ft to 37V4; Occidental Petroleum to 25 and Philips Petroleum to 10'4.

Humana, which has been under pressure for the past week after a brokerage house lowered its opinion on the stock, was very active and fell to 29. Among the blue chip issues, IBM fell 3 to 149 and American Telephone and Telegraph was unchanged at 23 4. Wickes topped the most active list on the American Stock Exchange with more than three million shares traded. It closed up at 54. Wang Labs Class was the second most active issue, and rose to 21 IN THE CREDIT MARKETS, government bond prices pulled back and interest rates edged up in early trading as the credit market rally Lost momentum.

JAN XI) JAN HI JAN 82 JAN 8J JAN 84 JAN 85 JAN 86 Unchanged 324 Leading Indicators Index for Hawaii Flat in 1985 Down 643 Volume Shares 210,250,000 from 3-32 point to 4 point and intermediate maturities were off I 3-16 point to 3s point. The 20- year bond lost 19-32 point and the 30-year issue dropped back Vz point, according to the invest-'. ment firm of Salomon Brothers Inc. Corporate and municipal issues fared better. At least part of the moderate price deterioration in the early going was due to investors selling bonds to acquire profits amassed during the market's re the early summer months.

That, the bank said, "derailed what was thought to be another year of solid growth for the visitor industry." Also, it said, the recovery following the settlement of the strike lasted onlv two months. The bank noted that the total visitor count was flat last year, and that the last time this happened was 1981, a recession year. On a brighter note, the economists said the construction-related components of the index remained "reasonably healthy" during the year. The Index of Leading Indicators for Hawaii ended 1985 at about the same level as a year before, according to preliminary data, the Bank of Hawaii said. In addition, it said the index in December was 2.5 percent above the year-earlier month but was moving down.

"This suggests perhaps a weak first quarter of 198(5," the bank's economists said. In its latest issue of "Business Trends," the bank attributed the weak 1985 performance to two visitor-related factors. One was the strike by United Airlines pilots during Semiconductor Has Been Dumping Index Climbs Japan Chips SAN JOSE, Calif. (AP) The U.S., Agency Rules in Semiconductor Industry Associ ation announced the industry's ajxui cuiiM-tuuve mummy increase in a key business indica tor ana said it proved a long Sale of KHNL-TV Set to Close Soon awaited recovery is wel under way." An increase in orders during February was accompanied by a iu.d percent rise in shipments to $603.6 million. The industry's book-to-bill ratio the measure of orders to ship momentum," concern that has Bremner said.

ments, nit i.io the highest level since July 1984. It was the second consecutive month that new orders ex ceeded shipments. Orders have climbed 21.2 percent since By Russ Lynch Star-Bulletin Writer Papers will be signed within a few days to transfer the ownership of of Honolulu television station KHNL-TV to King Broadcasting Co. of Seattle. However, the transaction will not be completed until Federal Communications Commission approval is received and that could take 60 to 90 days, Eric Brem-ner, executive vice president of King, said today.

Until that happens, no details of the trans the Commerce Department. "We are confident that the government will affirm its preliminary decisions in its final ruling," said Tom Dunlop, general counsel for Intel Corp. of Santa Clara, one of three American firms that initiated the complaint. "It is clear that employing predatory pricing practices to gain market control is a well-established strategy of certain Japanese companies," Dunlop added in a statement. A final ruling is expected by May 27, the department said.

At issue in yesterday's ruling were memory chips that are a major component in computers and telecommunications equipment called erasable programmable read-only memories (EPROMs) The department found that these Japanese fires had violated U.S. anti-dumping laws the most frequently: NEC Hitachi Toshiba Corp. and Fujitsu Limited. The administration-initiated case involves a different type of computer chip, a so-called 256-kilobyte dynamic random access memory chip (D-RAMs). That one is generally viewed as the more significant of the computer-chip complaints because it was the first one initiated by the administration under WASHINGTON (AP) The Commerce Department, in a preliminary ruling on a major U.S.Japan trade dispute, says Japan has been dumping computer memory chips in this country at below-production costs in violation of U.S.

trade laws. The decision could lead to stiff tariffs on imports of the Japanese semiconductor products a sophisticated circuit with a memory that can be programmed, erased and reprogrammed. The preliminary ruling triggers a requirement that the Japanese companies cited in the complaint begin paying a bond on all future shipments. The ruling came on a com- Elaint filed last September by semiconductor manufacturers, who claimed that Japanese manufacturers were deliberately flooding U.S. markets with the low-cost chips to try to squeeze out American firms.

Reagan administration sources, who spoke only on the condition of anonymity, said a similar decision was expected by the agency later this week on a companion complaint initiated by the administration itself. YESTERDAY'S ruling, and the follow-up one, seemed sure to have wide-ranging implications for U.S.-Japan trade relations. U.S. semiconductor makers praised yesterday's decision by President Reagan's plan, announced last September, to ease the U.S. trade deficit.

THE PRELIMINARY judgment on the EPROM chips was issued in an investigation that began last September after three U.S. semiconductor companies Intel, Advanced Micro Devices Inc. and National Semiconductor filed a petition alleging illegal dumping. Dumping occurs when foreign products are sold in this country at a price less than the cost of their production. Under U.S.

trade law, once a dumping finding has been made, the government can impose an import tariff on further shipments of the product. If the Commerce Department makes its decision final, then the U.S. International Trade Commis-sion would have 45 days to determine to what extent U.S. manufacturers have been harmed by the low-cost imports. An EPROM is a computer memory circuit that can be programmed over and over again.

Imports of the devices totaled $168.9 million in 1984, according to the Commerce Department. In 1984, Japan sold $1.7 billion of the chips in the United Spates, taking 15 percent of the overall U.S. market, according to U.S. manufacturers. November 1985, and 40.9 percent since September 1985.

"It now appears that a semiconductor industry recovery is well under way, and that all product lines are enjoying in creased business activity." as sociation president Andrew A. Procassini said yesterday. "February may represent the first month in which billings have benefited from the order rate increases which began last action or-plans for the station can be disclosed, he said. Bremner added, however, that "we anticipate no difficulties" in getting FCC KING HOPES "to bring some things to the party too" from its own experience, he said. But until all the details are completed and FCC approval obtained it is premature to talk about plans, he said.

He said King "cannot participate in any manner" in the running of the station until the FCC approval is complete. Bremner said King sees Hawaii as a "dynamic and interesting" market and as "a business center, crossroads of the Pacific," and likes the population mix in the Islands. KHNL, which was founded almost 20 years ago as KIKU, specializing in Japanese-language broadcasting, has its offices and studios at Sand Island and a transmitter at the Hilton Hawaiian Village Hotel. IN 1979, THE COMPANY was purchased for a reported $2.7 million by three groups the Cushman family of San Diego with 50 percent, Hawaii investors with 30 percent and Asahi National Broadcasting of Tokyo, which supplies Japanese programs, with 20 percent. The station still broadcasts in Japanese for much of the evening, producing its own English subtitles for Japanese films.

It also runs some Chinese programs. But under Blaneiardi it has ex uctoDer, he said. The ratio is compiled by the association from a preliminary survey of key U.S., European and Japanese semiconductor manufacturers doing business in the U.S. market. pr t'jy tr- -srr Japanese TM-DEFERREB ANNUITY Chip Makers Deny Claim approval.

King, a privately held company that owns four network-affili- ate television stations and six radio stations, will be aquiring its first independent television station, he said. BREMNER SAID independent stations such as KHNL have proven themselves to be good businesses in recent years and have "moved right up alongside affiliates" as a viable investment. King owns operates NBC affiliates in Boise, Seattle and Portland and a CBS affiliate in Spo- kane. Bremner said KHNL has "accomplished a lot" under the management of Rick Blangiardi, -the former KGMB-TV advertising sales representative who became general manager of the independent station in February 1984. King views the station as "not a startup situation but a going Earn Worth 1 yean compounded Tax-Deferred Yield n.7B panded into other areas, including live coverage at home and away of University of Hawaii sports.

The station also has such vintage shows as Leave it to Beaver, Twilight Zone, Star Trek and the Alfred Hitcock Hour. It also broadcasts movies and some shows produced in its own studio, such as cooking Uses of annuity: College expense Estate planning Retirement Gifts to minors Emergency reserves Other financial plans Features of annuity: No sale fees $5000 minimum purchase Tax-sheltered growth A wide range of payouts 10ofaccountvaluemaybe withdrawn yearly, without penalty Survey Shows Gains Expected in Isle Jobs TOKYO (AP) Four Japanese semiconductor makers today denied the U.S. Commerce Department's charge that they were selling computer memory chips in the United States at below-production costs. Fujitsu Hitachi Toshiba Corp. and NEC Corp.

said they believe that their semiconductors are not being sold at unfair prices on the U.S. market. The companies commented in separate statements reacting to the Commerce Department's preliminary ruling yesterday concerning the computer chips. Taro Ojabe, general manager of Fujitsu's international sales support division, said the preliminary ruling was "highly regrettable." He said his company "cannot but suspect that the ruling was the result of an irrational method of calculation" in investigating pricing of Fujitsu products made in the United States. Fujitsu is the only Japanese company producing memory chips at a U.S.

subsidiary Fujitsu Micro-Electronics Inc. in San Diego, Calif. Okabe said that he hoped his company would not have to reconsider future operations of the subsidiary, which has more than 700 employees. Seiji Igarashi, an NEC spokesman, said his company would submit accounts if necessary to show "it is doing a fair business." He said his company refused to do so when the Commerce Department conducted its inquiry because NEC has only a small percent of Japan's share of the chip sales in the United States. This insurance program is underwritten by Equitable Variable Life Insurance Company; a subsidiary of Equitable Financial Services, the nation's third largest insurance company managing assets over $77 billion.

Other plans available. Call 544-8415 for further details. Rates and terms subject to change without notice. "Based on 30 marginal tax bracket close the number of Honolulu employers sampled, but a spokeswoman from Manpower Inc. headquarters in Milwaukee said the survey included the area's largest employers.

The survey predicts that em- Rloyment opportunities in onolulu will be in wholesale retail trade, financeinsurancereal estate sectors, and in public administration Reductions are forecast in the services and transportationpublic utilities sectors. The results were part of a nationwide telephone survey of more than 12,500 employers in 385 cities conducted quarterly- Nationally, employers are also optimistic with 26 percent anticipating staff additions and only 7 percent foreseeing cuts. Honolulu employers paint a favorable employment picture for the second quarter, according to a survey conducted by a major temporary services company. The survey "indicates that 23 percent of the employers in our area say they will add staff this spring," said Doris Hannaford, manager of Manpower Honolulu office. "Ten percent (of employers surveyed) expect staff reductions "(and) another 64 percent foresee no changes in employment rolls." she said.

"Three percent are uncertain of hiring plans." For the year-earlier period, 17 percent of surveyed employers expected staff increases and 7 percent forecast reductions. The company would not dis INTERNATIONAL SAVINGS Banking for an International Hawaii. 14 Convenient island locations to serve you: OAHU MAUI HAWAII Hilo 935-5256 Waipahu 677-3181 Main Office 547-5110 Bishop $44-8568 Kahala 544-8487 Kailua 261-9731 Kapahulu 544-8595 Kapiolani 544-8482 University 544-8470 Waimalu 487-1587 Kalihi 544-8476 Kaneohe 235-5864 Kahului 877-3924 Wailuku 244-9002.