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Naspers jumps on Tencent's profit

Johannesburg - Shares in South African e-commerce and media giant Naspers surged more than 9 percent in afternoon deals on Wednesday after its Chinese money maker shot past estimates with a record quarterly profit growth.

Naspers, which owns more than a third of Tencent Holdings, climbed 8.99 percent to 1,172.37 rand by 14:12 SA time, on course for its biggest daily percentage gain in five years.

Tencent headquarters at Nanshan Hi-Tech Industrial Park in the southern Chinese city of Shenzhen. Credit: REUTERS

“The main reason why investors are excited about Naspers has got to do with Tencent. Tencent shot the lights out with their results. It's all Tencent,” Brendan Sacks, a trader at Nedbank Private Wealth said.

Tencent, the home of China's biggest mobile messaging service, booked a 60 percent rise in first-quarter net income on Wednesday.

Naspers, which also operates pay-TV business across Africa and publishes several newspapers at home, bought into the Chinese firm in 2001.

Tencent's explosive growth since listing in 2004 has also fuelled a rally the stock of Naspers, three quarters of whose net asset value comes from its stake in the Chinese firm, according to Sacks. - Reuters

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