Are institutions falling in love with Sasol again as it soars?

Sasol's stock price broke R93 this week, a 45% bump from its May low of around R64.

- Ciaran Ryan

On Wednesday, it went below the R90-a-share mark. But are institutions falling in love again with a stock that a decade ago traded above R650?

It seems they are, says Kea Nonyana, market analyst at Scope Prime: "Sasol for the past 10 days has been averaging two million daily shares traded."

Nonyana notes that on Tuesday (15 July) almost 600,000 shares changed hands in the first hour of trade, which shows significant institutional buying.

"This is on the back of traders believing that the oil price has found support at $68 a barrel on the fears that US President Donald Trump will impose further sanctions on Russia, which will disturb global oil supply," she says.

The company reported a 52% drop in basic earnings per share for the six months to December 2024, with revenue falling 10% to R122 billion - the culprit here being weaker refining margins and lower oil prices.

Correlation between oil, Sasol