Gemstar Stock Rises on News of Index Listing

Shares of Gemstar International Group Ltd., the maker of VCR Plus software that is trying to buy rival TV Guide Inc., rose 14% after it said it has been selected to join the Nasdaq 100 index on Jan. 3. Gemstar, which had $166.5 million in 1999 sales, surged $9.31 to close at $74.94 on Nasdaq. The shares have risen more than fivefold this year. Gemstar is incorporated in the British Virgin Islands but has its headquarters in Pasadena. Shares of companies typically rise when they join an index because mutual funds that try to mimic the index’s performance must buy the shares. The Nasdaq 100 technology stock-laden index has surged 96% this year. Gemstar, which makes software for interactive TV program guides, is seeking regulatory approval to buy TV Guide for about $9.2 billion. Gemstar, which licenses its technology to consumer electronics companies, wants to use TV Guide’s alliances with cable-TV systems and its expertise in selling ads for its electronic program listings.