Netscape Leads Surge in Silicon Index
Stocks of Silicon Valley companies ended the week higher, led by Netscape Communications Corp.
The Bloomberg Silicon Valley index rose 9.52 points, or 5.1%, last week to 196.09. The index, a price-weighted list of 53 high-technology companies, has risen 16.2% in the last month.
In the broader market last week, the Standard & Poor’s 500 rose 16.82, or 2.58%, to a record 668.91. And the Dow Jones industrial average closed at 5,687.50, up 169.36 points, just 2 points shy of its April 3 high of 5,689.74.
Netscape climbed $10.50 this week to $70.75. On Wednesday, Netscape announced an agreement with Hewlett-Packard Co. to help companies create internal communication networks using Internet technology. Also on Wednesday, the Cabot Market Letter added Netscape to its “aggressive growth portfolio,” which consists of no more than a dozen stocks.
Baan rose $10 to $70.875. The Dutch software company said it reached an agreement with majority shareholders of Berclain Group Inc. to buy the Canadian company in exchange for Baan shares.
Other stocks that rose include video game producer Electronic Arts Inc., which gained $7.125 for the week to close at $34.50. Disk drive maker Seagate Technology Inc. climbed $6.125 to $62.50, and Premisys Communications Inc. rose $6.125 to $59.75
The week’s biggest decliner was Bay Networks Inc., which fell $1.25 to $33.375. The computer networking equipment maker was downgraded to “accumulate” from “buy” by analyst T. Peter Andrew at A.G. Edwards & Sons Inc.
On Friday, the Silicon Valley index finished up 0.26 point. Hewlett-Packard posted the biggest gain, rising $4.125 to $109.375 after the company announced a 2-for-1 stock split and said it will raise its quarterly dividend by 20%. On Friday, HP’s stock dropped 7.4% on a disappointing earnings report for the fiscal second quarter.
