WATCH: Stock picks — Sasol and Richemont

Gerbrand Smit from NEFG Fund Management chose Sasol as his stock pick of the day, while Greg Katzenellenbogen from Sanlam Private Wealth chose Richemont.

Smit said Sasol had gone down about 30% in the past six months.

“Everyone forgets that Sasol is busy building a plant in Louisiana that should add around R180 a share. They are a good company in the long term. They do have a few headwinds with the oil price at the moment and the currency that is strengthening gives an excellent buying opportunity.”

Katzenellenbogen said Richemont took a knock on Thursday as the Swatch results were not great

“But 27% of Swatch products trade at $500 or less, whereas only 7% of Richemont watches trade at that level so it’s a much higher-end watch. The euro was stronger today [Thursday], which is not good from Richemont as it makes their products a lot more expensive. At the current levels, with the strong rand, so from a risk/reward standpoint, buying Richemont at R90 is a very good deal.”