Picture: REUTERS
Picture: REUTERS

Hong Kong — Tencent Holdings may be selling off, but analysts are the most bullish on record.

The Chinese tech giant fell for the fourth time in five sessions on Tuesday, as angst over US technology stocks returned.

This is after $55bn in value was wiped out, from its November 21 high to the close on Friday, with global investors cashing in some of this year’s best equity performers.

The slump has widened the spread between Tencent’s share price and analysts’ price targets to an unprecedented 19%.

Of the 40 stock watchers surveyed by Bloomberg, 98% maintain a buy rating on Tencent — the highest proportion to date.

The disparity shows the recent rout may be just a blip for Tencent, whose Hong Kong-listed shares have more than doubled in value this year.

The stock is the biggest driver of the MSCI China index’s 48% gain in 2017, contributing eight points to the gauge’s move, 53% more than the second-largest contributor, the US-listed Alibaba.

Major shareholder Naspers fell more than 6% on the JSE last week, hit by Tencent’s fall, as well as concern about pay-TV unit MultiChoice’s dealings with ANN7 and the SABC. Naspers rebounded 2.5% on Monday.

Bloomberg

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