Twitter, Facebook to boost Naspers

Despite a retreat in recent sessions, Paul Theron from Vestact believes that the current bullish sentiment within the global tech sector will push Naspers through R1,000 on the JSE.

On Wednesday, Naspers closed R21.92  or 2.28% down to R940 on the local exchange, giving the group a market cap of R391 billion.

Speaking on CNBC Africa, Theron said: “I think its going well through that R1,000 a share mark. I think it will be fun to own it at that time.”

He said that when social networking sensation Twitter lists on the NYSE, and with Facebook reaching and trading at all-time highs, “what it does by extension is make Tencent more valuable”.

Naspers, through its subsidiary MIH, has a 34% interest in Tencent, China’s biggest Internet company.

“It will also make Google more valuable, it will make Yahoo more valuable, it will make all of the listed Internet companies just perk up and trade at higher multiples,” Theron said.

“I think we are going to see Tencent trading higher on the Hong Kong market which is going to push Naspers through that R1,000 a share limit here on the local market. I know it is pretty elevated and at a pretty frothy price, but I think that its the stock we have got to own.”

On Monday, shares in Tencent surged as much as 5% after analysts at Barclays named the group among its top picks in China’s online sector. That boosted Naspers initially, however, it has since retreated during the course of the week, from a high of R980.

Internet search giant Google recently broke through $1,000 per share on the Nasdaq, while Facebook has lifted past the $50 a share mark having initially listed at $38 in 2012.

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Twitter, Facebook to boost Naspers