The JSE opened weaker on Friday as Naspers lost ground amid questions about why the market heavyweight had decided to sell a portion of its holding in Tencent and invest it in new ventures. Losses were broad-based, with property under renewed pressure as Growthpoint retreated. Gold shares rose on a firmer metal price. The gold price added 1.05% to $1,342.44/oz. Chinese internet company Tencent, of which Naspers owns about a third, provides the major support for Naspers’s share growth, while the group’s other interests are still regarded as being in a development phase, showing little if any profit at present. Naspers now intends to use the proceeds of the sale, which have been calculated to be about R125bn, on further investments. Shareholders have instead been clamouring for a share buyback, or the payment of higher dividends to reduce the discount in value between that of the Tencent interest and the overall company. Naspers is now down 8.6% for the year. The high-flying stock cli...
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