The performance of the overall market this year has been skewed by Naspers. The stock makes up the single largest weighting in the Top40, with a contribution of about 21% to the weight of the Top40 Index. Thus for every 5% movement in the share price of Naspers, the Top40 will move by about 1%. Naspers’s share price has recently run into resistance on its chart at R2,850. That level represents the upper boundary of a channel pattern that has been in place for the past two years. It is notable that the price began to correct at such a meaningful technical level. The correction began just after Tencent released a stellar set of results. Naspers owns a 34% stake in Tencent and the value of that stake accounts for about 125% of the value of Naspers. (Yes, you read that correctly … 125%. Naspers trades at a substantial discount to the value of its sum of the parts valuation).Since the Tencent results, however, a lot of air in the share price has begun to dissipate. One could argue the ma...

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