It all looked all right for Sasol a few days ago. The 29% increase in its share price from a low of R134 in mid-March 2024 to R173 in the second week of April was beginning to give shareholders a bit of hope …
Exceptionally high volumes at lower prices are bound to trigger sell signals on several technical indicators used by chartists , as well as fundamental investors looking at graphs to time entry.Is Sasol cheap yet? “Fuel demand in SA for the remainder of financial 2024 is expected to remain at similar levels. We continue to pro-actively manage the risk of market oversupply due to the changes in the fuel market landscape.”Sasol expects – and hopes – that the market for chemicals has reached a bottom as sales volumes have seen little recovery and prices have continued to fall.
Overall, says Sasol, sales volumes for the full year will come in at “the lower end of our guidance range”. Management says productivity in the 2024 financial year will probably be towards the lower end of its earlier prediction.