SS SSL Sasol Limited Loading... : Investor Sentiment and Bull/Bear Views

Godongwana notes that while oil prices hurt, "analysts are telling us that we're likely to see an up tick in terms of commodity demand and prices and where commodity producers, we suspect that we will also benefit from that." Geopolitical instability in the Middle East typically disrupts supply chains and drives investors toward hard assets. South Africa is a major exporter of PGMs (Platinum Group Metals), Gold, and Coal. If global commodity prices rise as a hedge against war, South African miners (who earn in USD but pay costs in depreciating ZAR) will see expanded margins. LONG South African resource majors to capture the "war premium" on commodities. A stronger ZAR (Rand) could offset the benefit of higher USD commodity prices; domestic energy constraints (Eskom) could hamper mining production.