Performance review on Naspers' share price

Some basic information about Naspers

Naspers is a global internet group and one the largest technology investors in the world. Naspers share price is quoted and traded on the Johannesburg Stock Exchange. Stock market ticker NPN.

Naspers is a popular traded stock in the South African region.

The rise and fall of Naspers share price

Like a lot of technology stocks, Naspers share price outperformed during the COVID-19 lockdown period with the stock reaching a high of 388800 in January 2021.  This was driven by consumers being locked down and craving digital first technology for entertainment.

So why the decline? Is this selloff a broad-based decline in technology stock or is Naspers share price taking the brunt of the fall?

A look from a technical perspective  

The MSCI World Information Technology Index tracks large and mid-cap technology companies’ performance from 23 developed markets (orange line). Although this broader technology index started its decline later, in October 2021, there is clear a correlation with Naspers share price. Technology stocks have seen a small period of increased value over the last few months.

Figure 1 Trading View NPN versus MSCI

NPN weekly price chart

After the initial selloff from January to August 2021, NPN share price saw a period of consolidation. From a technical analysis approach, this could be seen as a bearish flag formation. A break of the trend channel low, on the week 14^th February, fell short of achieving its measure move target of 121100.

Figure 2 Trading View NPN Flag formation

NPN daily price chart

A surprise Earnings Report on the 27^{th of} June resulted in a jump in the NPN share price from 191276 to 244500, leaving a gap or window open. Gaps and windows tend to be closed.

Figure 2 Trading View NPN Earnings report gap open

NPN monthly price chart

The strong upward move on the week 1^st of June has resulted in Marabuzo support at 202435. This is a technical support level taken from the middle of a strong bullish or bearish candle. This area has been pivotal in 2017 and 2019. It should also be noted that the area is central with regards to the gap/window left open.

Figure 2 Trading View NPN Marabuzo support

For more information on technical analysis, click on the following link.