The rise in the prime rate last...

The rise in the prime rate last week and the general perception that the Federal Reserve Board may raise short-term rates further as it attempts to strengthen the dollar took its toll on the market.

Interest-sensitive stocks were particularly hard hit with Home Federal Savings and Loan down $1.875, Imperial Corp. of America down $1, Great American First Savings Bank down 75 cents, and San Diego Gas & Electric Co. down $1.125.

Profit-taking also hit the non-earning biotechnology stocks with Molecular Biosystems Inc. down $1.75, and Xytronyx Inc. down 50 cents.

A new 1987 low was hit by Beeba’s Creations Inc., down 25 cents to $10.50 as it awaits the purchase of 20% of its stock by J.C. Penney at $18.75.

Good news wasn’t enough to help Fisher Scientific, which dropped three-quarters to $13.75 despite showing its first earnings of many years of 12 cents for its first quarter.

PS Group was down $1 to $35.50, even though the path was cleared late Sunday night for the sale of its airline subsidiary, PSA, to USAir.

The best gain of the week was made by Linear Corp. as its two largest shareholders gave a 30-day option on their 34% interest to North St. Paul, Minn.-based Interactive Technologies Inc. for $12 per share, plus $2 per share in contingency payments.

Maxwell Laboratories Inc. was unchanged despite reporting an earnings increase to 26 cents for the third quarter from 21 cents last year, plus a substantial increase in backlog.

Fabulous Inns, which was dropped from NASDAQ last week, has been replaced on our list by Celltronics.