International networking company Dimension Data (DiData) managed to capitalise on yesterday's gains and surge again today in good trade, as the market looks forward to improved results.
DiData was noticeable yesterday as one of the few JSE heavyweight shares to make headway in a market that was otherwise bathed in red. This was on the back of uncertainty caused by power cuts and concerns about the world economic environment.
Whereas the overall JSE index plunged more than 3%, DiData ended Monday's session more than 1% higher, with a rise of 11c, at 736c. In mid-morning trade today it had climbed 26c, or 3.5%, to 762c.
Overall, the JSE was trading better this morning as the market recovered from yesterday's blood-letting, with the Top-40 Index rising 2%, to 23 893.3 points.
An analyst at an international investment bank says sentiment around DiData has been good since it posted a 23% hike in its international revenue, to $3.8 billion, in its 2007 financial year in November.
"The group has performed well and the market is expecting another good number from it when it releases its interim management statement on or around 11 February," he says.
Yesterday's bucking of the trend could also have been due to DiData's primary listing being in London, the analyst adds, but overall sentiment towards the group was the main driver.
Consensus analyst forecasts for the group show an expected 15% rise in revenue for the 2008 financial year, to $4.345 billion; earnings before income tax to rise by 28%, to $167 million; and earnings per share to climb 8% to six US cents.
Another IT company, Datacentrix, surged 25c, or 6.76%, to 395c. However, share traders and analysts were puzzled as to why there was no news from the company.
"I think it was unfairly hammered yesterday and so there is a recovery, but it is a good company," one share trader says.
Datatec was last seen trading, little changed, at R27.90 in mild trade today, despite the news that its longstanding CFO David Pfaff has resigned.
Share