South Africa’s biggest company by market value, Naspers, is coming under pressure on the JSE as concerns grow that it’s a one hit wonder with Tencent.
According to a note from Purple Group’s EasyEquities’ trading desk, Naspers’ share price dropped 1.16% to R2 580.00 per share at the close of trade on Thursday.
This means that Naspers, which has a 34% stake in Tencent, is now trading at more than 26% below the market value of the Chinese company.
Investors and traders are seemingly punishing Naspers for value destruction in other parts of its business. The market has asked if it’s time for Naspers to sell its Tencent stake.
But the reality is that Naspers won’t let go of its Chinese star easily, and this could become an interesting buying opportunity for those who are greedy when others are fearful.
The post One hit wonder? Naspers trades at 26% below Tencent’s market value appeared first on BizNews.com.