Shares in media and Internet firm, Naspers fell heavily again in trade on Monday (7 April), eying a level back below R1,000, and tracking losses in its Chinese investment, Tencent.
In late afternoon trade on the JSE, Naspers lost R69, or 6.2% to R1,036, off its highest level of R1,354 achieved less than a month ago, on March 11, 2014.
One of the the JSE largest traded companies, Naspers also declined 4.09% on Friday, and is currently valued at R433 billion, off a high of approximately R565 billion achieved in March.
Tencent, in which Naspers has a 34% holding, lost 4.5%, following a 3.9% drop on Friday.
Reuters reported that Tencent was tracking losses in technology firms on global markets.
It reported that global markets were affected by losses in the tech sector on Monday, following a recent sell-off in Internet-related stocks on Wall Street.
Jackson Wong, vice president for equity sales at Tanrich Securities, said two factors accounted for Tencent’s weakness.
“One would be from the Nasdaq weakness, it significantly affects Tencent’s movement. Secondly, since they announced their earnings the stock has turned pretty weak because they didn’t beat the estimates, they were just within the range of expectations,” he said.
Investors were also trying to put a true value on Tencent as its e-commerce competitor, Alibaba Group heads towards an initial public offering.