Md. stocks surge, too Monday's losers transformed into Tuesday's winners

T. Rowe Price rebounds

Lockheed Martin, Ciena, MedImmune join in the fun


October 29, 1997|By Lorraine Mirabella | Lorraine Mirabella,SUN STAFF Sun staff writer Jay Hancock contributed to this article.

Stocks in Maryland-based companies rebounded yesterday, following to a lesser degree the sharp reversal in the rest of the market.

T. Rowe Price Associates Inc. led the recovery, rising $3.62 to $67.50 a share. In the previous day's market plunge, the mutual fund company's shares had gone down $8.375, or 11.6 percent.

The Bloomberg Maryland index rose 3.80 points yesterday to 198.53, with just over half the 99 firms posting price increases.

On Monday, the market sell-off had translated into an 11.43-point loss for the index, with companies such as Lockheed Martin Corp., Ciena Corp. and MedImmune Inc. losing $5.06 to $6.13 per share. Yesterday, Lockheed Martin gained 62.5 cents, Ciena $3.50 and MedImmune $2.865.

At Lockheed Martin, "we're not seeing any impact at this time" from the Asian currency crisis, which sparked Monday's slide, even though Singapore and Australia are big customers, said spokesman Keith Mordoff. In fact, Singapore just placed a $350 million order for F-16 fighters, he said.

Some Maryland companies held up well against the severe market decline or felt it only slightly because of expectations of a strong fourth quarter or upcoming year, said R. Bentley Offutt, an analyst with Baltimore-based Offutt Securities.

For instance, stock in the Ryland Group Inc. remained firm even during the sharp market decline. Ryland, which had reported strong third-quarter results, closed at $18.1875, up 31.25 cents. And Black & Decker Corp. bounced back to its level of a few days ago, gaining $3.50 to close at $40.9375.

"That reflects the fact that the shares have been depressed over the last several months because of third-quarter results, but had moved up in the last week reflecting analysts' expectations of a strong fourth quarter," Offutt said.

McCormick & Co., however, "because it's a food company, it really wasn't impacted that much by the market decline, and it really didn't spring back with the market today," Offutt said.

McCormick, which closed at $23.9375, up 56.25 cents, might even be helped by the Asian troubles.

"A significant portion of what we buy comes out of Indonesia," whose unit of currency has fallen by nearly half against the U.S. dollar since last summer, said Al Goetze, vice president of spice procurement for the company, which saw its stock fall $1.375 on Monday. That could make spice supplies cheaper for the company.

Pub Date: 10/29/97

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.