WATCH: Stock picks — Sasol and JSE all share index
Wayne McCurrie from FNB Wealth and Investments chose Sasol as his stock pick of the day and David Shapiro from Sasfin Securities chose JSE all share index.
McCurrie chose Sasol because of three factors.
“The Lake Charles chemical project looks good, it’s coming on stream and cash flow is doing massively positively for the company as a whole next year. Profits will be coming in about 18 months to two years time and Opec and Russia are going to cut production until they get that price of oil above $70 a barrel, so if this 1.2-million barrels a day cut doesn’t do it, there will be another markup.”
Shapiro chose the all share because no one knows whether it is going to be Mediclinic, British American Tobacco or even Aspen that turns around.
“They are going to turn around and I think most of the sellers are already out of the way and that they’ve done their selling. The stocks have been decimated and as soon as you start seeing some good news coming in, you’ll see the stock turn.”
Wayne McCurrie from FNB Wealth and Investments and David Shapiro from Sasfin Securities talk to Business Day TV