Sasol share price: Production update and trading view
Sasol today has released forward guidance as to what to expect from the groups H1 2021 results.
Sasol Ltd Trading statement: 6 months to 31 December 2020
Sasol today has released forward guidance as to what to expect from the groups H1 2021 results.
Salient features of the update are as follows:
- Earnings per share (EPS) are expected to be between R22,76 and R24,07 a significant increase from the EPS of R6,56 reported in the prior year’s comparable interim period
- Headline earnings per share (HEPS) are expected to be between R18,59 and R19,78 a more than 300% increase from the prior half year HEPS of R5,94
- Core HEPS (CHEPS) are however expected to have declined to between R6,94 and R8,79 from R9,25 previously
The Core HEPS figure (which shows a decline) see’s headline earnings adjusted for non-recurring items, earnings losses from significant capital projects (exceeding R4 billion), derivative and hedging activities as well as share-based payments on implementation of Broad-Based Black Economic Empowerment (BBBEE) transactions.
Broker ratings & client sentiment
The below two graphics provide traders with both a retail short term view on the stock, as well as an institutional longer-term view on the company, as to how market participants are positioning themselves on Sasol
A Thomson Reuters poll of 10 analysts maintain a long-term average rating of ‘Buy’ for Sasol (as of 29 January 2021).
From a retail trader perspective (as of 29 January 2021), 79% of IG clients with open positions on Sasol expect the price to rise over the near term, while 21% of IG Clients with open positions expect the Sasol price to fall.
Sasol Ltd: Technical view
The initial reaction to the trading statement was positive with the share price gapping higher on open (red square on chart). However since open the price has drifted back towards this price gap as morning trade progressed.
Provided that gap support at 15240 is maintained, 17500 remains the initial upside target, a break of which further favours a retest of the 18350 high. However a move below 15240 would suggest the bullish momentum and assumptions to have failed.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
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