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What's the correlation between PPC share price and ZAR/USD ?

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BMac
New Contributor
What impact does R/$ exchange rate have on PPC share price? If the rand strengthens by 10% against the US Dollar, how doe this effect the PPC share price, with everything else constant?
7 REPLIES 7
Preston
Super Contributor
mullet_fish
Regular Contributor
SimonPB
Valued Contributor
BMac, I would say zero correlation ..
kwagga
Super Contributor
PPC Zimbabwe less competitive and selling less cement because of stronger dollar, but that's about it.
Preston
Super Contributor
BMac, I have ask the same question 2 years ago and all it got me was losing money "hand over fist" on this dog. The question I assume you wanted to ask is "Why does PPC share price rockets at the time when the currency depreciate and falls like a piece of Sh*t it is when rand appreciate" .
Not applicable
If you are asking what the ZAR exchange rate does to their revenues, that is a complex question, but theoretically a weak ZAR makes imports more expensive and gives PPC a competitive edge by allowing them more margin. Manufacturing in SA is supposed to benefit from a weak currency. Now, in terms of the share price, that is also a complex question - but a weak currency allows for capital inflow as foreign funds pick up stock dips with the double benefit of a currency dip.
Russ
Super Contributor
I think ppc is looking quite promising right now. The construction stocks are showing signs of life again.