Online Brokers Trade Up on Good News

Internet brokerage stocks surged late Wednesday as analysts reported increased trading volume and President Clinton pledged a fight to block taxes on electronic commerce.

E-Trade Group Inc., the No. 2 Internet broker, rose $2.75, or 12%, to $25, its biggest jump in six weeks. National Discount Brokers Group Inc. soared $3.38, or 13%, to $28.50. Knight/Trimark Group Inc. climbed $2.94, or 9%, to $31. Ameritrade Holding Corp. gained $1.44, or 8%, to $19.13. Charles Schwab Corp. rallied $1.38 to $34.63.

“September’s looking like it’s a strong month, so [trading] volume might turn out to be slightly better than expected,” said Rich Repetto, an analyst with Lehman Bros.

Though Net-related stocks in general are rallying again, Internet brokerage shares are still far from their mid-April peaks. Analysts had warned that online trading volume would decline in the current quarter for the first time.

Clinton said in his speech at the International Monetary Fund’s annual meeting in Washington, “I hope we will pledge to keep cyberspace tariff-free, to help developing countries make better and wider use of technology--whether biotechnology or the Internet.”