Bank technology stocks remained mixed last week, as investors' search for longer-term investments led to purchases of more conservative shares.

But the market in general soared on the Federal Reserve's decision to leave interest rates alone, and on economic reports suggesting continued economic growth with low inflation.

The Dow Jones industrial average gained another 128.21 points for the week, and closed Friday at 6,348.03. In the last month, the Dow has risen nearly 6%.

The S&P 500 gained 6.82 points, closing at 737.62, while the Nasdaq composite, where many technology companies are traded, rose 4.29 points, to close at 1,261.79.

In general, bank technology stocks did not fare as well. About half of the companies on American Banker's technology stock list registered share price losses in the last week.

Richard K. Weingarten, an analyst with Montgomery Securities in San Francisco, attributed at least some of the lackluster performance to individual investor selloffs triggered by the coming end of the tax year.

Many of these companies will rebound in January when the "selling pressure is off," he said.

First Data Corp. was one of the financial technology firms registering a gain last week. The company's stock rose $1.875 for the week, closing at $83.625.

In news affecting the company, First Data's Telecheck Services unit, a check acceptance company, said it has bought Southern Telecheck Inc. for an undisclosed sum. Metairie. La.-based Southern Telecheck serves about 2,800 merchants.

In other news affecting banking technology stocks, the Bisys Group Inc. announced new contracts that supported the company's predictions of an impending period of accelerated growth.

Bisys won a contract with Bay View Capital Corp., San Mateo, Calif., to manage the thrift's retail, corporate, and mortgage systems.

As part of the deal, Bisys will supply Bay View, a $4 billion-asset company, with its TotalPlus software system.

Putnam Savings Bank, Putnam, Conn., signed a similar deal earlier in the week.

Bisys' stock jumped $2.25 and closed at $38.125.

Diebold Inc., a North Canton, Ohio-based supplier of automated teller machines, announced plans to build a new factory in Danville, Va. The company recently announced plans to open a similar facility in Staunton, Va.

The facilities are meant to help meet the growing demand for ATMs.

Diebold's stock was down 62.5 cents for the week, closing at $58.75.

Intelidata, the company derived from the recent merger between US Order and Colonial Data Technologies Corp., reported a net loss of $3 million in the third quarter, compared to a loss of $848,000 in the year- earlier period.

In addition to merger-related charges, company officials said quarterly earnings were affected by the recent acquisition of Braun Simmons & Co., and of Home Financial Network, two firms specializing in electronic home banking technology.

The company's shares were down 87.5 cents for the week, and closed at $8.75.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.