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Naspers rallies after losses

Jul 05 2010 22:36

Company Data

Naspers-n- [JSE : NPN]

Last traded R388.86
Change R0.86
% Change 0.22%
Cumulative volume 627,673
Market cap R159.64bn

Last Updated: 13/02/2012 at 16:48. Prices are delayed by 15 minutes. Source: McGregor BFA

 

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Johannesburg - Shares in Naspers [JSE:NPN] jumped more than 4% to R263.40 on Monday, as an analyst says concerns about tighter government regulation of its Chinese internet unit, Tencent, are likely overblown.

Shares of Naspers, Africa's biggest media group, have fell more than 9% in the last two weeks after the Chinese government banned the sale of virtual currencies used in on-line games to minors, raising concerns that Tencent's profits may be hit.

Tencent, China's biggest internet firm, contributed about $275m to Naspers annual results, helped by its booming gaming business.

But one Johannesburg-based analyst, who declined to be identified, says those fears are likely overblown.

"We're confident that Tencent is going to meet consensus estimates going forward in terms of growth," says the analyst.

Shares of Naspers on Friday fell as low as R248.00, their lowest level since October 2009.

Charts also show the stock had been oversold. Last week its 14-day relative strength index, or RSI, fell below the 30 mark, generally seen as a sign a stock has fallen too far.

- Reuters

Fin24.com is owned by Naspers.

 
 
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