CheckFree Gains Drive TSC's E-Finance Index - TheStreet

The little-mentioned Street.com E-Finance index was up more than 6.5% today. Sharp drop in interest rates? Maybe the Fed reversed course and announced a surprise easing? No and no, though there was a reason for the strong rise. Shares of CheckFree Holdings (CKFR) , a member of the index, were up close to 50% after it bought out the competition.

For a cool $1 billion in stock, CheckFree announced it would buy

TransPoint

, an electronic billing and payment joint venture between

Microsoft

(MSFT) - Get Report

,

First Data

(FDC) - Get Report

and

Citigroup

(C) - Get Report

. CheckFree, an online billing services provider, ended the day up 32, or 47%, at 100 1/4, though it traded as high as 125 5/8.

And while there were other big gainers, the Net sector as a whole was mixed.

TheStreet.com Internet Sector

index closed down 8.77, or 0.8%, at 1126.51. The more hip

TheStreet.com New Tech 30 ended up 19.16, or 2.8%, at 708.23. Activity may have been slowed somewhat ahead of Federal Reserve Chairman

Alan Greenspan's

Humphrey-Hawkins testimony on the state of the economy tomorrow. But check out the

story by Justin Lahart that ran earlier this week on why the Fed may be driving money to tech.

Among the other stocks to outperform,

Akamai

(AKAM) - Get Report

closed up 23 5/8, or 10.6%, at 246 1/8 after the company said it was in an alliance to deploy its services within

America Online's

(AOL)

network.

PurchasePro.com

(PPRO)

finished up 13 3/4, or 11.5%, at 133 1/4 after receiving positive coverage from research firms it has done business with.

Prudential Securities

and

Credit Suisse First Boston

, both underwriters for PurchasePro, initiated coverage of the provider of business-to-business electronic commerce services, with strong buy ratings. And

Bear Stearns

, which also has done underwriting, initiated coverage with a buy rating, but made the stock its No. 1 pick in the Internet B2B space.

Copper Mountain Networks

(CMTN)

finished up 6 13/16, or 9.4%, at 79 1/16. The company said it had captured the top position for shipments of digital subscriber lines in the business class for 1999. The company noted a report from the

Dell'Oro Group

that Copper Mountain's revenue accounted for 42.5% of total business DSL equipment sales in 1999. In addition, Copper Mountain is classified in the study as the leader for the number of business central office ports shipped in 1999, accounting for 42.9% of total ports delivered.

Kana Communications

(KANA)

closed up 19, or 7.7%, at 267. The customer service software maker said it would provide software to manage online user email for Yahoo!

(YHOO)

. And

CNet

(CNET) - Get Report

ended up 7 57/64, or 15%, at 61.