Santam triangle broken above - Looks good to R406.22Symmetrical Triangle has formed on Santam and it looks like the uptrend wants to continue.
We have a strong high Probability Trade lineup with the Price>20 and 200MA'
First target at R406.22
SNT trade ideas
Our opinion on the current state of SANTAM(SNT)Santam (SNT) is South Africa's largest short-term insurer, commanding approximately 22% of the market. Unlike insurers that offer endowment policies, annuities, or investment-linked products, Santam specializes in insuring tangible assets such as buildings and vehicles, as well as offering coverage for personal risks like disability or death that could result in loss of income. The company employs over 6,000 people and holds a level 1 BEE status.
Santam's business model involves paying the first R150 million of any claim, with the remainder covered by its reinsurance policies. The company has demonstrated resilience, particularly in light of challenges such as the Ma-Afrika judgment, which led to an increase of R1.7 billion in its provision for contingent business interruption (CBI) claims. Additionally, the company was impacted by the civil unrest in July 2021, but it continues to maintain its position as one of the JSE's most reliable quality shares.
In its results for the six months ending 30th June 2024, Santam reported a 10% increase in insurance revenue and a 35% rise in headline earnings per share (HEPS). The company attributed its resilient performance to the progress made with its FutureFit 2030 strategy and its diversified portfolio across market segments, insurance classes, and geographies, despite the challenging operating environment in its primary market.
Santam currently trades on a P/E ratio of 15.45, which reflects its status as a blue-chip stock with a strong balance sheet and a long history of steadily improving earnings. The share price has shown a consistent upward trend over the past 39 years, from trading at 90 cents in 1985 to around R348 today. Given its solid track record and dependable performance, Santam is a recommended addition to any private investor's portfolio.
SNT: some upside potential?A price action above 29500 supports a bullish trend direction.
Increase long exposure for a break above 30000.
The target price is set at 30900 (its 100% Fibonacci retracement level).
The stop-loss price is set at 28700 (its 50% retracement level).
Remains above its 200-day and a correction to its 200-day simple moving average will be regarded as an opportunity to increase long exposure.
Santam poised for great upside to R334.48!Not my favourite market to trade due to the high volatile nature.
But the analysis has shown, upside is likely to come.
The price is above both 20/200SMA and it's formed a Cup and Handle pattern.
Conservative traders might wait for the retrace and bounce before getting it.
Aggressive traders would already be in it.
BUt the target for Santam will be around R334.48.
Our opinion on the current state of SNTSantam, recognized as South Africa's leading short-term insurer, commands approximately 22% of the market share. Distinct from engaging in endowment insurance, annuities, or investment insurance, Santam specializes in insuring assets such as buildings and vehicles, and protecting individuals against significant risks like income loss due to disability or death. The insurer handles the initial R150 million of any claim, beyond which it depends on its reinsurance policies. Santam holds a level 1 BEE status and boasts a workforce exceeding 6,000 employees.
In response to the Ma-Afrika judgement, Santam augmented its provision for contingent business interruption (CBI) by R1.7 billion, showcasing its commitment to reliability and quality, traits that have made it one of the JSE's standout shares. Despite facing challenges such as the civil unrest in July 2021, Santam demonstrated resilience and growth.
For the first half of 2023, the company reported a 7% increase in gross written premiums and a return on shareholders' funds of 24%, with headline earnings per share (HEPS) rising to 1170c from 475c in the prior period. The company acknowledged the impact of weak economic growth and inflationary pressures on insurance growth prospects, alongside significant claims frequency due to adverse weather conditions, including catastrophic flooding in the Western Cape in June 2023.
An operational update for the nine months ending on 30th September 2023 revealed a 7% growth in premium for conventional insurance, with gross written premiums increasing by 4%. A notable achievement during this period was the traction gained through the MTN partnership in Santam Partner Solutions, resulting in nearly 100,000 new policies sold.
Looking ahead to the full year ending 31st December 2023, Santam anticipates a HEPS increase of between 17% and 37%, buoyed by strong returns on local and foreign money market and fixed interest investments, alongside the impact of a depreciating rand. Currently, the share is valued at a P/E of 12.29, underscoring its status as a prime example of a blue-chip investment, characterized by a robust balance sheet and a history of consistent earnings growth over many years.
Santam's share price trajectory over the past 37 years—from 90c in 1985 to around R295 today—illustrates the company's enduring value and appeal. Given its solid financial performance and strategic positioning, Santam represents a compelling addition to any private investor's portfolio, combining stability with potential for continued growth.
Our opinion on the current state of SNTSantam (SNT) is South Africa's largest short-term insurer with about 22% of the market. This means that it does not engage in endowment insurance, annuities or any kind of investment insurance. It insures assets, like buildings and vehicles and individuals against risks which they cannot afford such as the loss of their income through disability or death. Santam pays the first R150m of any claim and then relies on its re-insurance policy. The company has level 1 BEE status and employs more than 6000 people. Following the Ma-Afrika judgement, Santam has increased its provision for contingent business interruption (CBI) by R1,7bn. Santam rates as one of the JSE's most reliable quality shares. The company was obviously impacted by the civil unrest in July 2021. In its results for the six months to 30th June 2023 the company reported gross written premiums up 7% and return on shareholders’ funds of 24%. Headline earnings per share (HEPS) were 1170c compared with 475c in the previous period. The company said, "Insurance growth prospects were dampened by persistent weak economic growth and pressure on personal disposable income in South Africa from high consumer inflation levels and rising interest rates. Adverse weather conditions drove high claims frequency in the first quarter of 2023, followed by widespread catastrophe flooding in the Western Cape province in June". In an operational update for the 9 months to 30th September 2023 the company reported premium growth of 7% in conventional insurance with gross written premiums up by 4%. The company said, "New business written through the MTN partnership in Santam Partner Solutions continued to gain traction, with almost 100 000 new policies sold to date". The share trades on a P:E of 11,58. It is probably the best example of a blue-chip share, with a strong balance sheet and a history of steadily improving earnings year after year for many years. These facts can be seen in the steady upward trend of its share price over the past 37 years. In 1985 the share traded for 90c and today it trades for around R278. This share should be a part of any private investor's portfolio.
Santam showing strong upside to R345 but with a warningSantam large Cup and Handle formed, broke above the brim and now is going to test the support.
This will provide a conservative entry if we get a bounce back up.
7>21>200 - Bullish
RSI>50
Target R345.37
The warning is that it's been moving in sideways range for over a year, and it often peaks then drops and continues.
As the JSE ALSI is in a bear market at the moment (on smaller time frames) might delay the upside.
But the system says go long.
ABOUT
Santam is a South African short-term insurance company founded in 1918, making it one of the oldest insurance companies in the country.
Santam is headquartered in Cape Town, South Africa, and operates throughout the country, as well as in Namibia, Botswana, and Zimbabwe.
Santam provides a wide range of insurance products, including car, home, business, and personal insurance.
Santam is a subsidiary of Sanlam Limited, a leading financial services company in South Africa.
Santam is the largest short-term insurer in South Africa, with a market share of around 22%.
SNT rangeSNT trading in a range between R275 and R300. My preference will be on the long side.
Trade ideas are my own and not financial advice.
Santam moving averages looking goodHourly, daily & weekly moving averages looking good for this short term insurer.
SNT: timing very importantA price action above 26600 supports a bullish trend direction.
Breaking below this level will negate the bullish bias.
RSI leaves enough room for further upside price potential.
Remains above its 200-day simple moving average.
Increase exposure as the trend is developing further.
MACD crossover (lower panel) also supports a bullish trend direction.
SNT: crossing above its 200-day might signal upside potentialImproving confluence of technical trend indicators
SantamSantam | The share's monthly RSI has broken below an 11-year support zone and is now at the lowest levels it's been at in 18 years. For long term holders, this is not a positive technical development as it suggests a long term technical shift from bullish to moderately bearish. The key demand/supply zone of 246 has struggled to hold, opening up 214-216 as a next target, of which a failure would see R190 come in to play.
This chart forms part of a larger research note. It should not be considered as financial advice.
JSE:SNT Santam DistributionAnother one where the distribution has completed. After going overbought when it spiked through the upper trendline a buying climax (BU) was formed in 2018. After that Santam was trading in a distribution trading range. After an upward thrust (UT) price has been unable to break above the 200 SMA and Yearly Pivot Point and formed a last point of supply (LPSY). Now the price has broken the trading range and backed up (BU). Santam is weaker than the Top 40.
Santam - Breaking Down From It's Weekly ChartShort term insurance leader losing momentum over the medium term. Caution from an equity portfolio perspective.
SANTAM ShortPrice has retested the breaklevel and targeting R265 (head & shoulders pattern and 200ma weekly level) . A close above the daily 200ma will be warning of a possible comeback by the bulls.
$JSESNT - Rangebound.Santam is still trading in a range. Needs to break 340 to the upside convincingly.
