Thursday, January 28, 1999 Published at 17:41 GMT
Business: The Company File
Intel split spurs tech stocks
Intel earns $500,000 in revenue per worker
A stock split by the world's biggest chip-maker, Intel, has helped to boost US technology stocks.
Intel is the latest in a series of big technology companies to announce a 2-for-1 stock split and boost its dividend from two cents a share to three cents.
A stock split generally makes shares more attractive to investors because they can buy them in smaller amounts.
Intel has recently pleased investors with better-than-expected earnings as sales of its Pentium chips for personal computers surged over the Christmas period. The company plans to introduce the Pentium III chip later this year.
By 1525 GMT, the Nasdaq was up 38 points at 2,445.14, near its all-time high.
The key Dow Jones index had risen 58.70 points to 9.258,93.
Peter Cardillo, director of research at Westfalia Investments said: "What we're seeing here is renewed confidence in the technology industry. It is a way of management saying good times are ahead."
The Silcon Valley company's move follows stock splits by fellow technology giants Microsoft and IBM and Internet content provider America Online.
"All the splits that we've seen have just been dramatic in (their) effect," said Arthur Hogan, chief market analyst at Jefferies & Co in Boston.
Guy Truicko, portfolio manager at Unity Management in Lake Success said: "The news coming out of techs continues to be very good."
Shares in America Online, which announced a 2-for-1 stock split late on Wednesday, were up a hefty $8 1/15 to $173 9/16 in lunchtime trade.
After Internet search engine Yahoo! announced it was buying another Internet firm Geocities on Thursday for some $4.7bn, Geocities shares gained 32-1/4 to 107-1/4 - a 43% rise - while Yahoo! shares rose 4-1/8 to 340.
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