Wed, 23 Sep 2020

Naspers caught in Trump-China feud

08 Aug 2020, 06:13 GMT+10

Nilan Morar, VP of trading at GT247 said the announcement by Trump relates to the US trade tensions with China. Trump's announcement comes when the US election is less than three months away, and he has said the ban is in the interests of US security, and with the US election being less than three months away.

"It's certainly election-related, he is trying to make his mark," said Morar.

READ | US-China tensions send Asia markets tumbling

'Noise' or cause for concern?

"Tencent was down 10% at open, and had recovered by close - but on the open the perception as that this was going to hurt them," Morar added.

There are views that Trump is trying to get TikTok bought by US company, which according to some reports is Microsoft. The app is estimated to have about 800 million monthly users.

Investment analyst Simon Brown, said that the market moves might just be "noise", ahead of the US election and amid the US-China trade war.

"If it's just a ban of WeChat in the US, it's not going to do anything to Tencent's earnings," he said.

"Within a week or two or maybe even sooner we will have all forgotten about this and moved on."

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