Tencent slump erases $55bn in value - TechCentral

Tencent slump erases $55bn in value

Image: Chris Yunker

China’s Tencent, in which South Africa’s Naspers has a 33.2% stake, may be selling off, but analysts are the most bullish on record.

The tech giant fell for the fourth time in five sessions on Tuesday as angst over US technology stocks returned.

This is after US$55bn in value was wiped out from its 21 November high to Friday with global investors cashing in some of this year’s best equity performers.

The slump has widened the spread between Tencent’s share price and analysts’ price targets to an unprecedented 19%.

Of the 40 stock watchers surveyed by Bloomberg, 98% maintain a buy rating on Tencent — that’s the highest proportion ever.

The disparity shows the recent rout may be just a blip for Tencent, whose Hong Kong-listed shares have more than doubled in value this year.

The stock is the biggest driver of the MSCI China Index’s 48% gain in 2017, contributing eight points to the gauge’s move, 53% more than than the second largest contributor, the US-listed Alibaba Group.  — Reported by Richard Frost, (c) 2017 Bloomberg LP