Some IT companies are seeing the benefits of renewed interest in the market, with the larger, more liquid companies seeing their shares move up dramatically.
Shares on the JSE stared recovering from March last year, when investors moved in to take advantage of the lows that stock prices had hit on the back of the economic turmoil that plagued the world last year and the year before.
Dimension Data, for example, experienced a low of R4.37 on 24 October 2008, but has since bounced back to more than double and closed yesterday at R10.10.
GijimaAst is another strong mover. It has seen its share price improve by more than three times its recession low of 34c, on 27 February last year, to close yesterday at R1.18.
Business Connexion's share has almost doubled from when it dropped to R3.10, on 14 April last year. The share closed the day at R5.90 last night, with about 15% of this move happening during this week.
Beating the market
The All Share index, a collective measurement of how shares are performing, has also recovered, although not as sharply as some IT stocks. The index closed at 18 474, on 4 March, its recession low, and bounced back to close at 26 351 yesterday.
Irnest Kaplan, MD of Kaplan Equity Analysts, says the market has shown signs of renewed interest since its lows last year.
He explains that, in about March and April, the bourse started to feel the fallout of the global recession, which saw US banking giant Lehman Brothers close its doors in September 2008.
Kaplan says the stocks that have benefited from the renewed interest in the market are those that are larger companies and are liquid, which allows shareholders to buy and sell with relative ease.
However, he cautions that some of the shares may have moved up too quickly, and these movements are not sustainable.
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