The stock market continues to celebrate the...

The stock market continues to celebrate the war’s end and the hoped-for end of the recession but has yet to face up to the economic problems that don’t seem to disappear, said Irving Katz, a San Diego stock analyst.

“Although we will have lower oil prices, the consumer has not accelerated his spending, according to early reports of February department store sales,” Katz said. “The banks are still reluctant to lend to anyone but the most credit-worthy as the credit crunch continues.”

Nevertheless, San Diego stocks continue to gain as many join the market rally. A new high of $17 was reached by Gensia Pharmaceuticals, despite the fact that the company had recently registered the sale of 2 million common shares at current market prices.

Another new high was made by GTI, which reported fourth-quarter earnings of 12 cents a share, up from 6 cents a share during the same period last year. Yearly earnings of 29 cents per share were unchanged as the company issued 2.5 million new shares in connection with its acquisition of Valor Electronics.

Also making a new high was PS Group at $46.25. The stock attracted attention recently after investor Warren Buffett announced his intention to increase his stake in the company to as much as 45% of the total shares outstanding.

Agouron Pharmaceuticals touched a new 52-week high of $10.75, finally joining other biotech stocks that had previously rallied.

Price Co., which successfully sold $250 million of 6.75% convertible bonds due 2001, gained $2.50 for the week, closing at $44. Other gainers were Advanced Marketing Services, up $1, and Wahlco Environmental, up $1.25.