The Berkshire Eagle from Pittsfield, Massachusetts • 26

C2 The Berkshire Eagle, Saturday, October 31, 1987 World exchanges, following Wall Street, stage rallies Alarketplace ances of markets in the United States, Hong Kong and Tokyo and were impressed by the government's handling of the controversial offer of BP shares," said Richard Jeffrey of the brokers Hoare Govett. The Financial Times 100-share index gamed 67.8 to close at 1,749.8, and the Top 30-share index added 57.5 to 1,360.9. Calmer conditions also were evident on foreign exchange markets, where the dollar rallied as investors collapse on the Thailand Stock Exchange, but the Hong Kong and Sydney markets experienced small rebounds. Prices forged ahead for the second straight day on Wall Street. In London, the recovery in other markets and the Bank of England's readiness to buy unsold shares in the $12.2 billion sale of British Petroleum Co.

stock boosted equities for the second session in a row. But analysts said it remained to United Press International Most world stock markets recovered yesterday from losses earlier this week, buoyed by a surge on Wall Street that investors inter- preted as a sign of returning stability. Stocks rose significantly in London and Frankfurt, while the Tokyo exchange recorded its third-largest gain ever amid brisk buying. Stocks continued their eight-day be seen whether the London market's fortune had reached a turning point. "The major investors seemed happy with the overnight perform ollar continues its decline overseas covered short positions before the weekend, currency dealers said.

In West Germany, most shares on the Frankfurt market gained more than 5 percent as rallies in New York and Tokyo and a steadier dollar put investors in an optimistic mood. The Commerz Bank index rose 98.9 to 1,526.0. The index had stood at 1,876.6 immediately before the worldwide slump began. Thai authorities yesterday imposed lower limits on daily stock price fluctuations as Thailand's stock market continued its eight-day plummet, dropping another 7.79 points. The Securities Exchange of Thailand index closed at 299.83 points, compared with its record nigh of 472.86, hit Oct.

16. An exchange official said the maximum daily price movement on stocks had been lowered to 5 percent from 10 percent. In Tokyo, exchange officials said prices climbed in heavy buying with export-related issues leading the way. The Nikkei average of 225 selected issues, which lost 543.64 yen Thursday, soared 731.15 yen to close at 22,765.04 yen in its third-largest rise on record. The.

Tokyo Stock Exchange index of all listed stocks shot up 64.41 points to 1867.18. Tokyo brokers said the robust buying, especially by institutional investors, followed the New York Stock Exchange's strong upward move Thursday. Stable foreign exchange trading in Tokyo also contributed to the recovery, they said. The market also was supported by expectations of increased government spending on public works to boost the domestic economy, they said. In Hong Kong, the Hang Seng stock index shot up to 2,379 at the opening, mirroring gains on other Asian markets and rallies Thursday in London and New York.

But the index then gave up some of its gains and closed at 2,242, well up from Thursday's finish of 2,204 but only a fraction above Monday's close of 2,241.69. The Hong Kong market suffered its worst decline ever Monday, plummeting 1,120 points when trading resumed after a four-day suspension following the unprecedented 508-point plunge on Wall Street Oct. 19. Stocks staged a small recovery in Sydney, but brokers said the market had retreated into a "bear mode" and the advance barely dented the 45 percent of equity lost since the Oct. 20 crash.

is scheduled to address the American Council on Germany on Monday night in New York. A spokesoman for the West German central bank's New York office would not discuss Poehl's agenda in the United States but said a trip to Washington was a "possibility." The dollar fell to $1.3157 Canadian from $1.3185. In Zurich, gold fell to $469.50 an ounce, down from $473. In London, gold ended at $467.75, down from $469.50. Silver rose to $6.96 an ounce from $6.92 on the cash market; the Comex settled it at $6.95, up from $6,885.

Earlier in London, silver fell to $6,975 from $7.03. Accord on exchange rate stability is meeting its objectives. The Group of Seven consists of the United States, West Germany, Japan, France, Great Britain, Italy and Canada. Mandell said it appeared that the market is determined to test new lows. "It seems to be that too many people are convinced it will test the postwar low of 1.70 (against the mark," she said.

In London, the pound slipped to $1.7220, down from $1.7230. Later in New York, however, the pound rose to $1.7215, up from $1.7165. In another development yesterday, it was confirmed that Bundesbank President Karl Otto Poehl NEW YORK (LTD The dollar closed weaker yesterday against Imost of the major foreign currencies as bearish market participants looked in vain for concrete evidence that monetary officials wanted to halt its slide. Gold closed higher. Against the West German mark, the dollar fell to 1.7285, down from 1.7345 Thursday.

Earlier in Frank-: furt, the dollar firmed to 1.7275, up from 1.7270. "Since we have gone one way all week, you would have thought you 'might see some profit-taking," said Mandell, vice president and financial markets adviser to Barclays Bank in New York. "In there was no dollar strength today. The market apparently doesn't mind being short and is of further dollar de- clines." In New York, the dollar closed at 138.30 yen, down slightly from 138.45 Thursday. Overnight in Tokyo, the dollar rose to 138.55 yen, up from 137.55.

Finance Minister Kiichi Miy-azawa said the dollar-yen exchange rate is moving toward stability through coordinated intervention by major monetary nations. He said large-scale buying operations continued from Thursday to yesterday in Tokyo, London, Frankfurt, Paris, Zurich, Brussels and New York. Mandell said the market has heard comments from several monetary officials "but nobody is being explicit that the dollar is too low." She said there is a feeling in the market that the Group of Seven nations will have no choice but to reconvene to determine if the Louvre i Sunburst Horneg MANUFACTURERS OF HOMES VACATION HOMES GARAGES NOW OFFERING ERECTED PACKAGES After the fall, what? PACKAGE INCLUDES: Shpll Erected On Your Foundation THE RISING DALE i ii 1,260 SO. FT. Windows And Exterior Doors Installed ERECTED qm Your foundation Vinyl Siding Applied Interior Partitions Installed 24,610 In the business of serving business.

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But "we have a huge federal deficit and we're borrowing abroad," Leuthold told my associate, Virginia Wilson. "A risk premium meaning a higher interest rate is being demanded by foreign lenders, because there's a lessened respect for the fiscal responsibility of our government." He expects to see long-term bonds back at 10 or 11 percent, because "I don't believe the actions I've seen" in Washington this week, and says that he'll buy more bonds then. Going into the 1990s, however, he expects financial repairs to be made to the U.S. economy in which case, he says long-term rates could fall to 5 percent. So even at current rates, he says, today's long-term bonds treasuries for pension investments, tax-free municipals for individuals are "terrific buys." 1987 The Washington Post CONTACT a-TONY CONTENT A (413) 442-4223 Continued from Page Cl you reinvest your dividends (as do most investors in mutual funds).

If you spend your dividends, getting whole can take as long as seven years. But what if this isn't an ordinary cyclical downtrend? What if, as in 1929, it really does develop into something bad? In that case, you should be prepared to sell your stocks soon because they will eventually go far, far lower than anyone can imagine. Investors who bought right after the Great Crash, thinking they were getting in cheap, didn't break even until 1946. But it's too early, yet, to make this drastic a call. (2) It's doubtful whether the rise in interest rates (and decline in the value of bond funds) is over either, in the opinion of Steven Leuthold of The Leuthold Group in Minneapolis.

Money eased during the panic, which helped put interest rates House sales down WASHINGTON (UPI) Sales of new single-family houses fell 5 percent from August to September, the Commerce Department said yesterday. Housing sales last month were at a seasonally adjusted annual rate of 656,000, according to the department's Census Bureau, compared to a revised August rate of 692,000. I The September rate of new home sales was 11.8 percent below the September 1986 rate of 744,000. Through the first nine months of 1987, new housing sales totaled 542,000, compared with 598,000 for the same period of last year, a decrease of 9.4 percent. i An estimated 52,000 new houses were sold in September before seasonal adjustment, the department said.

The average sales price was $139,800, while the median sales price with half priced higher and half lower was $115,600. At the end of September, there were 362,000 new houses for sale, reflecting a supply of 6.8 months after seasonal adjustment, the department said. '0S xAIIpm 1 ii EffJ ii EDO i Ml Cl. 111 Private vt Tjj it rui lies ui awl 3 Diane Keaton and Cher 66 Nixon in China" Irwin Shainman reviews the Houston production of this major new American opera by John Adams. BERKSHIRE COUNTY SAVINGS BANK OiC DiFM tfliccs throughout Ik-rkshirv County ami on CaK- Cod Realize savings of up to 40 on monthly heating bills by replacing your old furnace with a WEATHERMAKER Furnace from Carrier.

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