The so-called January effect, in which stocks...

The so-called January effect, in which stocks that have been overly depressed by the year-end tax-loss selling start the New Year with a rally, seems to have been forgotten, according to Irving Katz, a San Diego-based stock analyst.

“This is probably attributable to investors’ concerns over the possibility of war in the Persian Gulf and the precarious portfolios of banks, savings and loans and insurance companies, which are heavily exposed to the continued decline in real estate values,” Katz said.

“There is also a belief that, as January goes, so goes the year,” Katz said. “If that be true, (remember that) the Dow Jones Industrial Average has already fallen 110 points, or 4.2%, in the first four trading days of 1991.”

Still, the overall picture pales in comparison to some of the 1990 losses by San Diego stocks.

HomeFed Corp., which fell 84.3% last year, continued to decline, giving up another 7.5% to 4.625, where it hovers just $.125 above its all-time low of $4.50.

The largest percentage loser of the week was Supercomputing Solutions, which has run out of time and money and has laid off most of its employees. The stock was off by 90%.

The largest point loser of the week was National Health Laboratories, which dropped $1.75 to match its 1990 low of $9. “The company is controlled by Revlon, whose junk bonds are becoming junkier,” Katz said.

Other significant losers of the week included Xytronyx, down $1.75, and Molecular Biosystems, down $1.375. PS Group, Rohr Industries and Price Co. were all down $1.

The only significant gainer of the week was Burnham Pacific Properties, which gained $1.25 but is still trading near its year’s low of $10.50.