Bank technology stocks shrugged off the recent selloff in the broader technology sector and for the most part gained ground last week.
Intel Corp., a bellwether in that sector, cast a pall over it Thursday when it warned investors that first-quarter revenues would be weaker than expected.
Thursday, Intel dropped $11.875 a share, or 13%, and "dragged all of technology down," said Bill Burnham, analyst at Piper Jaffray Inc., Minneapolis.
However, many bank services companies "shouldn't be affected by it," he said. "In the financial software arena, some stocks are down, but others are hanging in there."
The Dow Jones industrial average rose 23.66 points for the week, to 8569.38. The index is up 8% for the year.
The Nasdaq composite index shed 17.5 points during the week, and closed at 1753 Friday. The technology-laden index is up 11.6% for the year.
Goldman, Sachs & Co.'s index of U.S.-traded technology companies, which lists many bank vendors, fell 6.4 points for the week, to 160.83. This was caused in part by a $8.50 drop in the price of Computer Sciences Corp., a reaction to Computer Associates International's abandoning its hostile takeover bid.
In other news affecting bank technology companies, shares of SEI Corp., Oaks, Pa., continued their explosive run, rising $3.1875 last week, to $62.1875. The stock price has risen 48% in 1998 and 173% in the last 12 months.
The run-up is a result of SEI's continued profitability in its core businesses of asset management and trust outsourcing. Also helping the stock is improved communication between the company and the investment community, said Richard B. Lieb, president of SEI Investments.
"SEI's story is considerably more coherent than it used to be," Mr. Lieb said.
Jackson E. Spears Jr., analyst at ABN Amro Chicago Corp., reiterated his "buy" rating on SEI last week. The company landed six large bank customers in 1997, which should generate $15 million of revenue a year, he said.
Elsewhere, stocks of Internet-related businesses, such as Security First Technologies, perked up in reaction to the government's announcement a few weeks ago that it wants electronic commerce to develop "unfettered by taxation," said Gary Craft, analyst at BancAmerica Robertson Stephens.
Security First's stock price has increased 88% in 1998. It closed at $13.625 Friday, up $2.75 for the week.
Observers said the company, which is headquartered in Atlanta, may announce Tuesday the sale of its banking unit, Security First Network Bank. The bank, which has $48 million of assets, has been on the block for six months.
In other news, Mobius Management Systems Inc., which makes large-scale document-archiving software, registered with the Securities and Exchange Commission for an initial public offering.
Mobius, Rye, N.Y., reported revenues of $41.3 million in 1997-a 34% jump from 1996. The company, is seeking to sell 2.5 million shares of common stock at about $12 a share. It said it hopes the offering will bring in $27 million, which would be used to fund operations and acquisitions.