Craig Pheiffer, chief investment strategist at Absa, has highlighted Naspers as a stock to watch in 2019.
Naspers shares struggled in 2018, due largely to Chinese company Tencent’s fall from grace, he said.
Tencent’s decline came in the wake of strict Chinese regulations on the release of new video games – an industry in which Tencent is prolific.
According to Pheiffer, however, the strict regulations “should be lifted in time and while there may be an industry stockpile of new games for the regulator to review, that earnings channel should see accelerated growth again”.
Naspers has also recently decided to unbundle MultiChoice, which ensures, according to Pheiffer, that it will become a more “focused internet investor and player”.
Pheiffer also highlighted retailer Pick n Pay, wood fibre and paper company Sappi, and global brewing company Anheuser-Busch InBev as other stocks to watch in 2019.