Naspers jumps most since 2014 on double boost from MSCI, Tencent | Fin24
  • Data Market Inquiry

    MTN says it is prepared to defend itself before Competition Tribunal over report.

  • Claims of sabotage

    What we know so far about allegations of sabotage at an Eskom power station.

  • Dudu Myeni

    Court dismisses former SAA chiar's bid to have Outa withdraw from delinquency case.


Naspers jumps most since 2014 on double boost from MSCI, Tencent

Oct 31 2018 14:37
Thembisile Dzonzi, Bloomberg

Naspers soared the most in close on four years Wednesday as investors got two pieces of good news.

Naspers benefited from a 5.9% rally in its 31%-owned Tencent Holdings in Hong Kong, the biggest gain for the Chinese internet giant in 2 1/2 weeks.

Secondly, index compiler MSCI said overnight it has decided against penalising companies with multiple share classes - like Naspers - with reduced representation in its equity benchmarks.

Africa’s largest company by value jumped as much as 9.7%, the most since December 2014, after MSCI said equities with unequal voting structures will continue to be eligible for inclusion in its indexes at their free float market capitalization weight.

“Given how big Naspers is for the South African market, where many investors can’t own Naspers’s full weighting in the Top 40 Index because it is higher than their maximum holding allocation, many Naspers shareholders would be people who own it through emerging-market indexes,” said Bright Khumalo, a portfolio manager at Vestact Asset Management in Johannesburg. “If they had to drop out of the index, it would be a big hit in the short run for the Naspers share price. That threat is now removed.”

Naspers accounts for 16% of the benchmark FTSE/JSE Africa All Share index, pushing the gauge as much as 3.6% higher Wednesday. The stock is 20% of the market’s TOP40 Tradeable Index. Naspers was 8.4% higher as of 12:45. 

* Fin24 is part of Media24, a subsidiary of Naspers.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

jse  |  naspers


Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote