am i missing something? how is it that sasol comes out with fairly good results (imo) makes some positive announcements and the share gets hammered 3% in a day. don't tell me it's because they are going to change the CEO shortly.
That correlation with the oil price is flimsy. Yes there's the occasional market reaction to load up on SASOL if the oil price goes up but that often dissolves. Anyone seeing some similarities with 2008 here? I reckon 1 or two dominoes have gone over, needs two or three more and we could see an unravelling again. The dominoes I reckon would be - similar crisis to Egypt and Libya in Saudi, Eurpoean country default and an oil country default eg Venezuela or similar and then slippery slope. That said we could get two dominoes falling and no crash, this is all a big stress test for the world economy at the moment.
Correl Coefficient for Sasol vs Oil ZAR on monthly returns Feb 2009 to Feb 2011 is 0.53. 47% not explained by oil price. My cut off for tightly correlated is above 0.6. Maybe we looking at correlation using different correl-goggles.
How about...investors bought the share when there was a rumour of good results and is simple taken profits now that results are confirmed. I have seen this happen many times....buy the rumour sell on the fact
Guys, this is a major heavy weight which means it will always be affected by the ALSI index moves. That means that when global markets move up or down so must sasol, agl & BHP. So much of these daily swings can be attributed to this sentiment based move... Secondly... so what if it moves up or down a few % if you buying it for long term gains and if you trading in Sasol stick to your rules of entry, exit and profit take.
Hmmm.. John that 'few' % now startng to look serious on SOL, AMS and most heavy weights..... Only a Libya factor or a longer term downward correction of our market? I ponder - where's the bottom? Can I pick it this time?