- South Africans were alarmed to learn of the rapid decline in the value of Sasol on Monday
- The energy giant dropped in value by an incredible R45 billion
- Shareholders were reeling as the share price dropped by 47%
On Monday, Briefly.co.za reported on the Rand's plummet in value compared to the US dollar.
At the time, the exchange rate fell to R16.75 to the dollar - a 40-year low.
The South African economy has had its fair share of struggles in recent times, but few could have predicted the hit that the stock market would take, thanks to Sasol.
The energy giant plunged to about 50% of its value within a few hours on Monday.
Fin24 reported that the share price dropped as low as R68 on Tuesday and the loss in value is estimated to be at a staggering R45 billion.
A key driving influence is the oil war being waged between Saudi Arabia and Russia, with the Middle East nation slashing their oil prices in an attempt to flood the market.
Sasol shareholders took a pummelling and the news caused a stir via social media as well.
Briefly.co.za observed the reaction from experts and the general public.
Local entrepreneur Nthabeleng Likotsi (@MissNthabeleng) said,
"Yesterday Sasol lost R45 Billion after the oil price collapsed. Oil plunged over 30% overnight, this after Saudi Arabia on Sunday made the biggest cut in its prices in the past 20 years. I take there’s insurance to guard against such? Someone please explain the implications."
The Native (@Alek_May92) shared an interesting suggestion:
"Dude I was thinking the same thing, this is an opportunity to hold some Sasol Shares."
Simon Grindrod (@SimonPGrindrod) said,
"R 45,000,000,000.00 wiped off Sasol value in one day. That’s more PIC losses, public pension fund and Government money down the pan. Pity the South African who has a government pension. No jokes, our economy didn’t need this."
Mpho Sadiki (@MphoSad) said,
"It’s a bloodbath our there ... #Sasol down 40% in single morning trade."
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