Sasol Ltd. (SSL) Falls 8.4% as Energy Stocks Lose Momentum
Sasol Ltd. (NYSE:SSL) is one of the 10 Stocks Investors Are Dumping Right Now.
Sasol snapped a three-day winning streak on Wednesday, losing 8.38 percent to close at $12.46 apiece, as investor sentiment was dragged down by the double-digit decline in crude oil prices, thanks to the official ceasefire between the US and Iran.
Sasol Ltd. (NYSE:SSL) fell alongside its counterparts, having benefited for weeks from the higher oil prices and supply crunch.
Photo from Sasol Ltd website
Late on Tuesday, President Donald Trump announced that the US and Iran have agreed to a two-week ceasefire on condition of the latter reopening the Strait of Hormuz.
The Strait is a critical waterway passage where 20 percent of global crude oil demand passes through. Since the start of the war, it was ordered shut under Iranian control, sending prices of global crude oil and natural gas soaring, as shipping giants were forced to look for alternative paths to transport the said commodities.
Meanwhile, the decline can also be attributed to profit-taking after Sasol Ltd. (NYSE:SSL) soared to a new two-year high in the previous trading day.
Last month, investment firm JPMorgan turned bullish for Sasol Ltd. (NYSE:SSL), upgrading its price target by 122 percent and upgrading its rating to “overweight” from “underweight” previously, on expectations that the latter would benefit from the recent oil price surge and continued supply issues.
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