Sanlam Stock Trading Alert: SLM Breaks Channel Ahead of R3.5T Asset Deal

Quick overview

Sanlam Limited’s share price dropped below key support at ZAR 8,633 just ahead of the big transaction with its UK asset management business. Short term pressure, but the strategic realignment is to sharpen Sanlam’s global focus.

June 16, 2025 is when Ninety One plc will complete the acquisition of Sanlam Investments UK. The deal, revised earlier this year, includes the issue of 13.7 million shares to Sanlam and will be dual listed on the LSE and JSE the next day. Executives expect a big boost to Ninety One’s total assets under management (AuM) to over R3.5 trillion.

This is a deeper integration of Sanlam’s global ambitions with a well known institutional manager, but investor caution remains.

Sanlam Limited: Local Macro Adds to Uncertainty

Local South African data added to the gloom. Inflation was stable at 2.8% YoY, within the central bank’s target range, but retail sales dropped 0.2% MoM – a sign that local consumer demand is softening.

• Inflation (YoY): 2.8% – SARB to hold rates steady
• Retail Sales (MoM): -0.2% – demand is weakening
• Sanlam sector exposure: insurance and asset management tied to consumption

A dovish policy stance may be some relief, but questions around consumer resilience will weigh on financial sector earnings – including Sanlam’s.

Sanlam Limited Technical Breakdown Bearish

Technically Sanlam (JSE: SLM) has broken below its rising channel and 50-EMA (ZAR 8,878) on the 2-hour chart. A quick bounce off 8,633 formed a long lower wick, but weak MACD momentum is not convinced.

• Support levels: 8,633, 8,404, 8,279
• Resistance zones: 8,768, 8,900
• MACD: Histogram in red – weak momentum
• Pattern: Ascending channel broken – bearish tilt in place

Unless bulls get back above 8,768-8,900 with conviction, the path of least resistance is down. Watch for consolidation unless macro or high volume buying changes the momentum.

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Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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