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Sasol is this week’s worst emerging-market stock, so far

Following the oil price crash and concerns of a potential rights offer.
Image: Carlo Gabuco, Bloomberg

The funds most exposed to SasolIt has been a week of steep drops for some emerging-market stocks, but Johannesburg-traded Sasol has out-plunged its peers, battered by the crash in oil prices and concern among investors of a potential looming rights offer as it grapples with a debt burden of about $8 billion.

Shares in the fuels and chemicals producer, South Africa’s biggest company by sales, have lost almost 58% since the week started, the most among the 1,401 members of the MSCI Emerging Markets Index, which is down 5.3%. The latest slump has dragged the stock to levels last seen in 2001.

Read: The funds most exposed to Sasol

Listen: Sasol shares plummet on oil price crash

Sasol delayed an investor call scheduled for Tuesday until March 17, noting that its oil-price exposure for the rest of the fiscal year is not hedged. While the company had assumed oil will stay in a range of $50 to $70 a barrel, Brent crude traded just above $36 on Wednesday.

The stock was 7.1% lower as of 12:56 p.m. in Johannesburg, valuing the company at R41.7 billion. The yield on its $750 million of notes due in 2028 climbed for a sixth day to a record 6.88%.

Sasol’s 0.6% weighting in the benchmark Johannesburg index has limited its impact on the overall market this week. Among emerging markets, Poland’s WIG 20, Russia’s dollar-denominated RTS Index and Saudi Arabia’s Tadawul All Share Index have been the worst performers this week, falling at least 12%, while South Africa’s gauge has dropped about 4.7%.

© 2020 Bloomberg L.P.


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Seems like Sasols Ethane cracker is wide open and leaving a stink!

Could not have happened to a nice company, one that would not consider discriminating against long-standing employees….oh, wait….

I never thought that one of my best shares moves would have been a sell.

I sold out all my Sasol @R400 in 2017

Of course I also made mistakes, like selling Kumba Iron ore @R60 per share, and sitting back and watch it run all the way past R400.

It would be interesting to know what percentage of BEE schemes are still above water at the moment. BEE was intended to be a buoyancy-vest for the politically connected. That buoyancy-vest has turned into a block of concrete, leaving the “empowered” with zero equity, zero dividends and a heap of debt.

The socialist clearly underestimated the vicious nature of the free market. BEE is a fat tick on a dead cow.

There is areal risk of this company going to the wall. The guavamunts will not provide any assistance in this!!!

Who was the idiot that decided to build in Louisiana?

Trough my dealings with them in the past I were only dealing with idiots per sy. They talk more to their
cell phones than anything else, a bunch of IDIOTS indeed.

It’s easier to get to meet the Pope than someone in Sasol.

To the international community. Virtually every single municipality run by theANC is bankrupt due to ANCcorruption and non-payment of electricity to Eskom.

I think if you give an investor a choice between Sasol and Ebola these days, 9 of 10 investors might actually go with Ebola. The oil price seems to be going to back up to $50. No one can survive for long below that price. So, At least it’s in the bottom band of Sasol’s modelling.

What worries me about Sasol is the almost casual reaction of the board and executive management. This is not the first time that the board comes across as being in a coma when the bad news come out. The oil price will go up. The debt problem can be fixed. The Lake Charles fiasco will eventually generate profits. But the leadership……

If anyone could assist, please help. I bought into shares when they were still running at 300ps and as it kept dropping i kept buying. Well im at a 68% loss at the moment and a rand value of close to 12k. What do i do now? Do i sell and and accept the loss but then use my funds to do short buy and sells as it ups and downs during the day, making little profits to recover my loss, or do i just leave it alone and buy more hoping to bring my overall purchase price ps down?

End of comments.





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