Sasol defied another slump in the oil price yesterday, climbing 15% despite the price of Brent crude oil continuing to trade below $20 a barrel and US crude futures declining further on worries that there soon may be nowhere to store the oil that nobody is buying due to global travel restrictions. At R77.25, Sasol's share price has more than doubled this month. It's still down 75% this year, however.

Although Sasol has hedged a large portion of its production until the end of June, Ingham Analytics says this isn't enough to boost earnings and it has adjusted EPS estimates down again. It previously cautioned on Sasol's guidance on profits from the Lake Charles Chemicals Project in the US and now questions why the project will make such a large loss for the year, particularly as it should have a feedstock pricing advantage. There are other concerns too around the balance sheet. Is a rights issue doable? Do you buy or sell the stock? Get some answers in Ingham Analytics' latest note on Sasol,"A raw state".

In "Eurozone Stress Fractures - Dj vu all over again" top trader Andrew Kinsey explains the backdrop to what is happening to markets in the eurozone. And there are also lessons for South Africa. Despite the negativity, and the fall-out from Covid-19, there are opportunities for traders in the fixed income, derivatives and currency markets. Interestingly, the currency pair that Andrew says offers the most potential upside is a surprising choice and he also advises which currency is most favoured behind the US dollar.

Also today, Hudaco Industries plans to list on A2X Markets next week as the stock exchange continues to gain traction and Atlantic Leaf Properties says it has benefited from a strong tenant base as property companies start to come under pressure due to Covid-19.

Finally, Tony Cross interviews Douglas Kruger on his new book: Virus-Proof Your Small Business. 50 Ways to Survive the Covid-19 crisis.

Take care if you're venturing out.

Stephen Gunnion

Managing Editor, InceConnect

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