Big tech locals buck Wall St trends

By PETER GRIFFIN

Millions of dollars were shaved off the share prices of blue chip tech stocks yesterday as trade resumed in the US markets, but local tech players bucked the trend to claw back some of the losses of last week.

The country's major IT company, Advantage Group, halted its downward slide, gaining nearly 17 per cent to close at 35c. Sky TV managed a rise of 4.8 per cent while Telecom closed up 1.4 per cent.

Elsewhere, the trend was upwards.

Scott Technology jumped 8.7 per cent while Cadmus rose 8.3 per cent. Renaissance, Spectrum Resources and Software of Excellence all made small gains.

The few substantial drops included GDC Communications, which fell 8.6 per cent, and Selector Group shares closed down nearly a quarter at 2c.

But it was a different scene on Wall St.

The first day of trading since the attack on the World Trade Center saw the tech-orientated Nasdaq hammered down 116 points to close at 1579.55, its lowest point since October 1998.

An anticipated drop in consumer spending and the possibility of US military action combined to hit the most prominent IT stocks.

Microsoft fell about 8 per cent to close at $US52.91 ($82.29) while Compaq tumbled 15 per cent.

Hewlett Packard, Intel, Oracle and Sun Microsystems also experienced sizeable dips.

Among the hardest hit on the Nasdaq was Auckland-based Brocker Technology, which saw its shares plunge 62 per cent to close at 20USc.

Brocker's group general manager Simon Jones said the company would meet Nasdaq officials this month to look at ways of clinging to its Nasdaq listing.

"We'll be looking at a rescue package to potentially stay on the Nasdaq.

"We may move to the Nasdaq's small cap index, or we may retreat to the Toronto Stock Exchange, where we are already listed," he said.

Having reported a loss for the year ending March of more than $C19 million ($29 million), Brocker claims it has achieved a "marked improvement in business performance" after cutting staff and winding down unproductive business units.

The company made a loss of $C89,000 on turnover of $C20.3 million for the quarter to June 30.