By 13:00 local time, shares in Naspers, a multinational media company with principal operations in electronic media, declined R6.29 or 1.38% to R450.99 on the JSE despite the All Share Index showing a recovery, following a sell-off last week amid recessionary woes in the Eurozone.
A dealer noted that Tencent was down again in Asia trade on Monday, while Facebook was also a factor. Naspers owns 35% of Tencent Holdings, while both companies have stakes in Russia’s Mail.ru Group.
Naspers owns 30% of Mail.ru Group through its MIH Russia Internet BV investment vehicle. Mail owns 37m shares in Facebook.
Naspers had dropped 5.17% to R436.21 rand last week, its biggest percentage drop in more than 10 months, after a 3.4% slide in Tencent Holdings.
The dealer said that Naspers had seen a recovery towards the back end of last week with some “punters wanting to take some money off the table”.
Shares in Facebook closed at $31.91 per share on Friday (May 25), 16% off its Initial Public Offer Price.
Globally, tech stocks had been bolstered pre-Facebook’s listing; however, the social networking group lost more than $19 billion in market capitalisation from its $38-per-share offering.
In other tech stocks, mobile operator Vodacom dropped 55 cents to R102.95 with the dealer noting investors providing a sell recommendation for the group. Vodacom is facing a price war with fellow operators in SA, while shares in the group dipped below R100 for the first time in more than three months on 18 May, amid a potential crisis for its operation in the Democratic Republic of Congo.
ICT group lost 2.32% or R1.18 to R49.73, and Blue Label Telecoms dipped 2.22% or 14 cents lower, to R6.16.