Tencent’s share slide since late January has done no favours for the JSE, whose fortunes are partly linked to the Chinese internet company Since reaching a high on January 23, the Hong Kong-listed owner of WeChat and partial owner of the popular Fortnite game has lost a quarter of its value, or $143bn (R1.9-trillion). Bloomberg data show that Tencent’s valuation decline tops Facebook’s $136bn rout in the three trading days that followed its lacklustre earnings call last week. Facebook’s warnings that margins and growth would shrink have precipitated a broader tech sell-off. Tencent’s decline, partly the result of analysts revising down their growth forecasts, has hurt its biggest investor, Naspers, whose shares have slipped 13% over the same period. Since Naspers makes up about a fifth of the JSE, Tencent’s fall is being felt far beyond the Hang Seng Index, and SA’s largest bourse is feeling the pinch too. The top 40 index has lost 5% since the firm started retreating from its Janua...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now