Shares in information and communications technology (ICT) group Dimension Data (Didata, DDT) spiked sharply on Thursday on the back of an impressive set of financial results on Wednesday, an ICT analyst said.
On Wednesday the group said it had returned to profitability, achieving adjusted earnings per share of 0,9 US cents for the year ended in September 2004, compared to a 2,7 US cents loss it reported last year.
Its adjusted profit was recorded at $11,434-million (R68,604-million) — a recovery from an adjusted loss of $36,356-million.
Shortly before 1pm, Didata shares were quoted at 375 cents per share — 8,70% higher than 345 cents it traded at when the JSE Securities Exchange closed on Wednesday.
Some 2,242-million shares, worth R8,114-million, had changed hands in 178 deals.
The stock’s intra-day best level on Thursday was 378 cents — a level it last reached on October 4.
“The results were much stronger than expected and investors are also expecting a positive turnaround going forth,” the analyst said, adding that the investors sometimes take a while to digest such information which explains the “delayed” reaction. – I-Net Bridge