Shares in South Africa’s media and entertainment group Naspers have jumped 9,52% so far this month, outshining the media index at 6,97%. Analysts said the stocks have been “undervalued in recent months and were beginning to gain value”.
By 11.49am on Wednesday, shares in Naspers had picked up 1,3% to R130,98. On Tuesday, the group helped pushed the JSE higher when shares surged almost 6%.
“The stocks have been undervalued in recent months. I don’t think all the hype and excitement are triggered by anything else other than the fact the stocks are beginning to gain value,” a Johannesburg-based trader said.
Another local analyst added that Naspers has been “a poor performer over the last six months and the selling pressure may be the major driver over the past couple of weeks”.
“It’s difficult to tell if the group is working on any major deal as it is in a closed period. If there was anything out of the ordinary we would have heard about it by now,” he said, adding that although the share movement in recent weeks suggested a major development, media sector shares in one of its competitors locally should have picked up as well.
Analysts have also ruled out the possibilities of a major deal with an overseas company, saying that Russia and China would be the prime drivers in the future.
Early in September, Business Day reported on speculation that the group
may be in talks to buy a stake in Russian publisher Promsvyazbank but Naspers has not confirmed the reports.
The group has publicly said that it planned to make key investments in high-growth markets such as Brazil, China, Southern Africa, India and Russia. – I-Net Bridge