Johannesburg - Naspers’ market capitalisation rose above R1 trillion ($63 billion) on Tuesday as Africa’s biggest company by valuation tracked the record gains of Chinese WeChat messaging app developer Tencent, in which it owns a 34% stake.
Naspers shares rose as much as 2.8% before trading 1.8% higher at R2 310.48 as of 3.42pm in Johannesburg, extending all-time highs. The stock has advanced 19% in May. Shenzhen-based Tencent was 2% higher at HK$173.30 at the market close in Hong Kong, also a record, and is valued at HK$1.6 trillion ($206 billion).
Read: China's slowdown weighs on Naspers
“Many new technology stocks are at an all time high including Facebook and more importantly Tencent, in which Naspers has a big share,” Peter Takaendesa, an analyst at Cape Town-based Mergence Investment Managers, said by phone. “On top of that, the weaker rand is helping Naspers as its Tencent earnings are converted.”
Tencent has been by far Naspers’ most successful investment as the Cape Town-based company transformed itself from a South African newspaper publisher into a continent-wide multi-media provider and backer of emerging-market Internet businesses. Africa’s second-largest listed company is South African oil and gas producer Sasol, which has a market capitalisation of R313 billion, according to data compiled by Bloomberg.
The rand has weakened 26% against the US dollar since the start of 2015.
BLOOMBERG