After three straight weeks of big losses to start out the year, the Los Angeles Business Journal’s index of the 200 largest public companies had its second-straight week of gains.

Leading the way was IndyMac Bancorp, which leaped 61 percent for the week. Investors were optimistic after the company’s chief executive said the Pasadena-based lender would be profitable by the end of the year and the Federal Reserve cut interest rates for the second time in as many weeks. Shares closed at $9.86.

Rancho Cucamonga-based PFF Bancorp also benefited from interest rate cuts and received an additional boost when the holding company of PFF Bank & Trust reported stellar third quarter earnings. Shares jumped 33 percent for the week to $13.08.

Finally, shares in K-Fed Bancorp added 29 percent after the Covina-based holding company for Kaiser Federal Bank reported great second quarter earnings. Shares closed the week at $11.21.

On the way down was Chatsworth-based Image Entertainment Inc., which said earlier in the week that BTP Acquisition Co. violated the a pending merger agreement, throwing the deal into doubt. Shares in Image plunged 28 percent and closed the week at $1.11.

The stock of Woodland Hills-based workers’ compensation insurance provider Zenith National Insurance Corp. shed 11 percent after the company reported fourth quarter earnings far below expectations. Shares closed the week at $37.94.

Down due to merger activity was Los Angeles-based outsourcing services provider PeopleSupport Inc., which rejected a second unsolicited takeover offer from IPVG Corp. Shares lost 3.8 percent to close at $13.37.