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Cape Town - The share price of Naspers [JSE:NPN] was up on Monday on the back of a 3% rise in Tencent.
Tencent's share price led the gains on the Asian markets on Monday morning.
According to JP du Plessis, a portfolio manager of Stonehage Equity Advisory, the share prices track each other pretty closely given that Naspers’ 34% stake in Tencent accounts for close to 90% of Naspers’ market value (using current market values of both firms).
"Monday’s strength in the Tencent share price appears to be driven by persistent rumours of corporate action between Tencent and Snapchat," said Du Plessis.
"Snapchat is a predominantly US focused social networking application with the potential to complement Tencent’s successful WeChat and social networking services, which are attempting to increase their international footprint beyond the core Chinese market."
Du Plessis said guessing if or when Naspers' share price may break through R1 000 per share is very difficult.
"Given the close relationship between the two shares, further short-term strength in Tencent should well see Naspers break the R 1000 level," he said.
The all time high of Naspers' share price was R976.99 on October 21 2013.
By mid-afternoon trade the Naspers share price was at R964, up 2.55% from Friday's closing price.
* Fin24 is part of Media24, a subsidiary of Naspers.
Tencent's share price led the gains on the Asian markets on Monday morning.
According to JP du Plessis, a portfolio manager of Stonehage Equity Advisory, the share prices track each other pretty closely given that Naspers’ 34% stake in Tencent accounts for close to 90% of Naspers’ market value (using current market values of both firms).
"Monday’s strength in the Tencent share price appears to be driven by persistent rumours of corporate action between Tencent and Snapchat," said Du Plessis.
"Snapchat is a predominantly US focused social networking application with the potential to complement Tencent’s successful WeChat and social networking services, which are attempting to increase their international footprint beyond the core Chinese market."
Du Plessis said guessing if or when Naspers' share price may break through R1 000 per share is very difficult.
"Given the close relationship between the two shares, further short-term strength in Tencent should well see Naspers break the R 1000 level," he said.
The all time high of Naspers' share price was R976.99 on October 21 2013.
By mid-afternoon trade the Naspers share price was at R964, up 2.55% from Friday's closing price.
* Fin24 is part of Media24, a subsidiary of Naspers.
