Chinese gaming limits knock Naspers
Market heavyweight Naspers experiences a severe jolt
Market heavyweight Naspers experienced a severe jolt on Tuesday, falling nearly 5% at one stage, after Chinese authorities clamped down on the game-downloading activities of its 34%-held Tencent investment. Tencent experienced its worst fall in at least six months, losing 4.13% on the day, after Chinese authorities announced their intention to limit online gaming time for under-18s. Naspers closed 4.37% lower at R2,488, its second sharp fall in a month. It shed 5.89% on June 12 amid market jitters about the high valuations of tech stocks. Naspers traded at a price:earnings ratio of 98 on Tuesday. BP Bernstein stockbrokers analyst Vasili Girasis said he would avoid Naspers for now, and rather focus on mining stocks on the JSE, which could benefit from a weaker rand. Tencent earns most of its profits from game downloading. "Naspers looks dodgy at this stage," Girasis said. Herenya Capital Advisors trader Petri Redelinghuys said Naspers’s fall on the day might have been exaggerated as ...
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