International Tech stock rout sees Naspers drag down JSE

Jun 12 2017 18:14
Martin Harris, Trading desk at EasyEquities

Company Data


Last traded 3310
Change -105
% Change -3
Cumulative volume 3130583
Market cap 0

Last Updated: 01/01/0001 at 12:00. Prices are delayed by 15 minutes. Source: McGregor BFA

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Cape Town - Naspers [JSE:NPN] collapsed R158.03 to R2.525 per share – slipping 5.89% following a sharp drop in Hong-Kong listed Tencent, in which Naspers has a large investment interest.

Tencent was targeted in a global rout of tech stocks seen on Friday last week.  Goldman Sachs turned bearish on the tech sector, warning investors that they should not consider tech as a safe-haven, and some fear it has become a massive market bubble. The move saw the US market offloading the likes of Facebook, Apple, Amazon, Microsoft, and Google. 

The rand traded at R12.80 to the greenback at the close of the JSE.  The rand remained resilient and firmed 1% following Moody’s decision, late on Friday, to downgrade SA’s debt to a notch above sub-investment grade.

Gains in other sectors were not enough to halt the slide caused by Naspers, with the blue-chip Top40 dropping 1.54%, followed by the broader All Share Index dropping 1.25%.  The Financial Index gained 0.42% on the back of the stronger rand, with banks increasing 0.94%. 

The Industrial Index, which contains many of the dual-listed companies on the JSE, closed the session down 2.09%.

The price of brent crude firmed 1.24% to $48.74 per barrel.  Last week the oil price slipped following the announcement that American crude oil inventories had soared by 3.3 million barrels. 

The Gold price traded flat at $1266/Oz as market participants remain neutral ahead of the US Fed meeting on Wednesday.  The Federal Monetary Policy Committee (FOMC) are set to announce their interest rate decision.  The market widely expects that the FOMC will deliver their second rate hike for the year by 0.25%

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