Tencent shares suddenly lose $17bn one day before earnings | Fin24
 
  • SA Revenue Service

    The tax agency says a unit that tackles illicit financial flows has recovered R2.6bn since April 2019.

  • Eskom

    The power utility has brought back a former manager to head up its Kusile construction.

  • Zimbabwe

    The country has turned to UAE in hopes of selling a stake in its national oil company.

Loading...

Tencent shares suddenly lose $17bn one day before earnings

May 15 2018 12:36
Sofia Horta e Costa, Bloomberg

Tencent is back below HK$400 as investors await its quarterly earnings.

The shares slumped 3.4% on Tuesday for the biggest drag on the Hang Seng Index, taking its losses since a record in January to $95bn.

Whether it’s just a case of profit taking after a five-day rally, whispers about quarterly numbers, or just index rebalancing ahead of China’s MSCI inclusion at the end of the month, the drop may reinforce concerns about the company’s earnings.

Analysts predict the Chinese Internet giant will probably report its lowest profitability since at least 2003 after the close of trading on Wednesday.

Adding to the jitters was a 14% after-hours slump in Vipshop, a New York-listed Chinese retailer which counts Tencent as one of its investors.

The options market is implying a move of 3% either way after the results day, which would be the biggest earnings reaction in more than two years.

* Fin24's parent company Media24 is part of the Naspers Group. Naspers owns a stake in Tencent.

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

tencent  |  ict  |  companies
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote

Loading...