MARKET WRAP: JSE closes lower as big guns drag market down, led by Naspers
The JSE closed weaker on Thursday as a number of present or former market heavyweights suffered significant setbacks on the day. Naspers led the retreat among the big market caps, plunging more than 9% at one point, before closing 4.59% lower at R3,330. The group earlier announced in the day it intends selling 190-million of its shares in Chinese internet company Tencent, reducing its stake to 31.2%. Tencent is the main driver of Naspers’s meteoric rise over the past few years and the market questioned the unusual move, as it has never sold any of its Tencent interests before. There were also questions where and how the proceeds would be used. Naspers indicated the proceeds, calculated to be about R125bn, would be spent to accelerate the growth of the group’s classified interests, as well as those in the online food and online delivery, and fintech businesses. These interests are, at present, not contributing to earnings growth, which is predominantly driven by Tencent. British Amer...
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