BLUE chip shares retreated yesterday, the 100th anniversary of the Dow Jones Industrial Average, as investors took a defensive stance following comments from analysts suggesting a negative short term outlook.

The Dow shed 53.19 points to close at 5,709.67. Circuit breakers which halt electronic trades went off in mid afternoon when the index fell 50 points.

Some 341 million shares were traded compared to a daily average of 430 million as some traders extended their three day Memorial Day weekend.

Losing shares outnumbered winners 1,578 to 776 and 795 shares remained unchanged.

On the bond market, yields on 30 year Treasury bonds rose to 6.85 per cent from 6.83 per cent Friday. The market was closed Monday for a national holiday.

Analysts warned against what they called over optimism on the market.