Tencent buys back shares for second day, but it’s a long road back, says analyst
‘We may continue to see more pressure for Tencent in the short term, but it’s good timing to buy back because it sends a message to the market’
Hong Kong — Tencent bought back shares for a second day on Monday, after its first repurchase in four years spurred speculation the battered internet behemoth may do more to support the stock. The Shenzhen-based company said it bought 124,000 shares for HK$39.1m ($5m) on September 10, more than five times the amount it spent on Friday. The previous time Tencent bought stock was in April 2014, when it spent HK$77m buying shares and spurred a three-day rally. By starting with a small repurchase, Tencent could be testing market reaction before considering more, says Shawn Yang, an executive director of Blue Lotus Capital Advisors who covers the social networking giant. The stock fell as much as 1.5% on Tuesday and has lost 35% from its record high in January. "This is just the beginning — we may see more buybacks from Tencent," Yang said on Monday before Tencent announced its second round of purchases. "Buybacks can minimise the downside impact but they’re not enough to immediately tri...
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