Internet giant, Naspers, broke throught the R1000 share price barrier on Friday morning. This was due to a weakness in the Rand and investor’s interest in Tencent, one of Naspers companies based in China. The share price touched R1012.77 shortly after the market opened today, 6th of December.
Naspers owns a third of the Chinese internet company, Tencent, which owns the popular QQ and WeChat instant messaging services
The surge in Naspers’s share price comes despite the group warning late last month that it was expecting a big increase in development spending in the second half of its current financial year.
Announcing its interim results for the six months ended 30 September 2013, Naspers said it planned to focus on developed classifieds websites and building digital terrestrial television networks in Africa through its MultiChoice subsidiary.
The company said that this would have a “dampening effect” on earnings and cash flow in the second half and for the 2014 financial year as a whole.
“We are building e-commerce platforms, in particular online classifieds, [and] rolling out digital terrestrial television across many cities in Africa. The pace of investment in these opportunities will accelerate sharply in the second half of the current financial year,” Naspers said.
“We expect development spend to exceed R7bn for the full financial year to March 2014, compared to R4.3bn last year.”
The surge in its share price has propelled its market capitalisation to R420bn.
