Shares in media and entertainment group Johnnic Communications (Johncom) and Naspers fell on Tuesday on the back of different factors, a trader said.
Contrary to speculation that these companies’ shares fell as a result of the Independent Communications Authority of South Africa’s (Icasa) proposal to close M-Net’s two-hour open window for non-subscribers, a trader cited unbundling and profit-taking as the drivers.
Johncom owns a 37% shareholding in M-Net, and Naspers controls 60% of the pay-TV channel.
“I’d say the fall was unbundling-related for Johncom shares, whereas with Naspers we are seeing a continuation of profit-taking as a result of that big run we saw over the past few weeks,” a trader said, adding that Icasa’s proposal had “totally nothing” to do with the shares’ performance.
At 4.32pm, Johncom shares had fallen 4,88% or 195 cents to trade at R38 per share — their intraday worst level. Naspers shares were trading at R73,25 — 3,62% or 275 cents in negative territory, having recovered from their intraday worst level of R71,50.
Last week, Icasa announced that it will hold hearings on the proposed amendments to M-Net’s broadcasting licence on April 21 and 22. It invited those interested to make presentations before April 5.
If the regulator’s proposal is successful, M-Net non-subscribers will cease to have access to the pay-TV channel from September next year.
The channel is expected to oppose Icasa’s proposal strongly. — I-Net Bridge