Sanlam Limited (JSE: SLM), the non-banking financial services group, has been known to capitalise on thematic trends, and its latest expansion plans are no different.
The financial services group also released stellar interim half-year results despite a challenging economic environment for consumers as interest rates remain at multi-year highs.
The earnings report showcased an increase in cash net results from financial services, which increased by 30% compared to a year ago, while operational earnings increased by 64%. New business volumes grew 19% due to growth in the investment management segment, supported by the Absa asset management business.
Another highlight from the Sanlam stable this week was the deal between Sanlam and Europe’s largest insurer, Allianz, which finally ended after a decade. The deal will open more doors for Sanlam and give the local financial company a foothold across Egypt, which it has been eyeing for some time now.
Looking at the daily chart of Sanlam, we can see the price action has been moving in an ascending channel, which has hit resistance at the R69.66 level (red line) and has retraced lower. The price action is currently finding support at the R66.95 level (solid black line), which is still above the 50-day SMA (blue line).
If the support does not hold, then we could possibly see the price action move to the lower part of the channel as the short sellers take control. If the price action finds a bid and moves beyond the major resistance at R69.66, the next significant level of interest is around the R72.92 (green dotted line) mark.
Sources: Sanlam Limited, JSE SENS, BusinessDay, TradingView.
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