The Dimension Data share received a fillip after its supplier, networking giant Cisco, released better than expected fourth-quarter figures.
The share, which rose 25c or 6.75% to 395c yesterday, was trading up another 26c or 6.58% at 421c late this morning. At one stage the share price was as high as 430c.
Reuters reports that excluding one-time items, Cisco earned $1 billion, or 14c a share, compared with $163 million, or 2c a share, in the same quarter of the previous year.
Analysts had expected earnings of 12c a share.
The local IT market also took comfort from the Cisco figures and the performance of US markets.
The Nasdaq composite index closed 53.54 points or 4.44% higher at 1 259.55 yesterday, while the Dow Jones industrial average gained 230.46 points or 2.87% to close at 8 274.09.
The Standard & Poor`s 500 index rose 24.97 points or 2.99% to 859.57. The improvements came after three consecutive drops in both the Dow Jones and the S&P indices.
Stock performances in the US were attributed to hopes of another interest rate cut to help the economy, as well as bargain hunting among technology shares.
By late this morning, local stock Datatec, for which Cisco is also a vendor, was 25c higher at 990c. AST was up 2c at 62c, FrontRange was 1c up at 196c and Glotec was 1c up at 40c.
Bucking the trend were Faritec (down 4c at 80c), Aplitec (5c lower at 295c) and Softline, also down 5c at 85c.
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