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MBA Stock Index hits record high.

MBA Stock Index hits record high

Ignited by the Fed's one-percent drop in the discount rate, Wall Street gave investors a Christmas to remember by smashing through the old record highs during the last month of 1991.

And nowhere was this bull run more evident than the Modern Brewery Age Stock Index, which raced ahead 189.04 points, or 7.27 percent, to close at a record high of 1790.68 during the fourth quarter of 1991. In less bullish fashion, the Dow Jones Industrial Average pole vaulted 5.04 percent during the period en route to an all-time high of 3168.83.

Illuminating the underlying strength in last quarter's rally in brewing stocks were two statistics: winners bested losers by a four to three count, while those stocks hitting new high white-washed those falling to new lows by a five to zero count.

Genesee Corp. was one of those stocks hitting a new high last quarter after its share price came to rest at $41. The reason for Genesee's strong performance: second-quarter earnings per share nearly doubled to 83 cents from 43 cents a share in the year-earler period. The result: Genesee's stock price swelled 16.3 percent during the three-month period. In fact, Genesee was the largest percentage-gainer of the lot as a result of its expanding bottom line.

Not surprisingly, perennial Wall Street favorite Anheuser-Busch was on investors' buy lists last quarter and the result was as expected: the nation's top brewer watched its stock price rise $8 a share before calling it quits at $61.50. Like Genesee, a strong income statement triggered the stock rise, as the St. Louis brewer's earnings per share rose to $1.01 from 92 cents a share in the same period last year.

Coors also brewed up strong returns for its shareholders after its stock price added 15.1 percent to $21. The investment firm of PaineWebber lifted its rating on the company to "attractive" in late December, sending the stock higher as a result.

On the sell side of the ledger, Kirin Brewery felt the unkind glare of Tokyo's stock market, as that market continued to fall despite a worldwide, Wall Street-led rally for most stocks. As a result of Tokyo's problems, Kirin's share price fell $4 a share, or 3.7 percent, to $105. Kirin was the largest dollar and percentage-loser of the lot last quarter as a result.
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Title Annotation:Modern Brewery Age Stock Index
Publication:Modern Brewery Age
Date:Jan 13, 1992
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