Investors bid down tech stocks, weighing effect of Fed rate hikes.

Bank technology stocks slid slightly last week, as investors mulled the impact of the Federal Reserve's larger-than-expected interest rate increases.

Investors were especially skittish about the prospects for banks in coming months, as observers theorized that financial institutions' net interest margins would be squeezed by the central bank's tightened monetary stance.

However, some financial systems issues moved higher, particularly software and outsourcing firms.

Deluxe Corp. announced Friday that it had signed a definitive agreement to acquire Financial Alliance Processing Services Inc. for an undisclosed sum.

Deluxe officials said the Louisville, Ky.-based company, which sells credit and debit card, processing services to financial institutions, is expected to record revenues of $21 million this year.

The American Banker reported last week that Deluxe was seeking to acquire a credit card processor to complement its debit card processing business.

St. Paul-based Deluxe's stock closed at $28 per share Friday, down 50 cents for the week.

Trust systems developer National Computer Systems reported sharply higher third-quarter earnings last week, with net income hitting $4.6 million, or 30 cents per share, up from $1.5 million, or 10 cents per share, in the corresponding period last year.

Third-quarter revenues for Minneapolis-based NCS reached $94.6 million, up from $77.6 million in the same quarter of 1993.

NCS's stock closed at $15 per common share Friday, unchanged for the week.

Another provider of trust and investment support systems, Wayne, Pa.-based Sungard Data Systems Inc. announced last week that its board of directors had authorized the purchase of up to one million shares of its common stock before Dec. 31, 1995.

The repurchase plan covers about 5.3% of the company's outstanding common stock. The purchased shares will be used for Sungard's stock option and award plans, company officials said.

Sungard will continue its practice of buying shares on the open market for its employee stock ownership plan, officials added.

Sungard shares closed at $37.875 Friday, down 25 cents for the week.

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