Bank technology stocks got hammered for the second consecutive week as investors sold both equities and bonds, giving up hope for a lowering of interest rates.
On Friday, the Labor Department reported that the unemployment rate fell from 5.8% to 5.5%, a surprise to many economists. That also turned the stock market bearish, as investors took the view that Federal Reserve Board may now opt to maintain interest rates as a buffer against inflation.
In news affecting bank systems stocks, Affiliated Computer Services Inc. announced last week that it has filed a registration statement with the Securities and Exchange Commission for a proposed public offering of 1.8 million shares of stock.
Officials at the outsourcing firm said Hambrecht & Quist will lead the underwriting group with Bear, Stearns & Co. and Donaldson, Lufkin & Jenrette serving as co-managers.
Proceeds from the offering will be used to repay debt under the company's revolving credit agreement, and for working capital and general corporate purposes, including potential acquisitions.
Trust systems developer National Computer Systems Inc. said Tuesday it has extended its shareholder rights plan and took other actions to protect the company against "coercive or inadequate takeover tactics or offers."
A company spokesman said the board of directors' moves weren't in response to any pending takeover bid, or of any potential threat.
The Minneapolis-based company said the shareholder rights plan, set to expire in July 1997, was extended to July 6, 2002. The company also amended the plan to change the exercise price of the rights, to $55 from $50 a share. It reduced the stock ownership level at which rights become exercised to 15% from 20%.
