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Celanese Increases Prices of Acesulfame Potassium

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Celanese increases prices of acesulfame potassium

On March 23, Celanese (CE) announced that prices of acesulfame potassium, sold globally under the Sunett trademark, would increase to three euros (or $3.21) per kilogram. The prices will be effective April 1,  2017, or as contracts allow. The impact of the price increase could be visible in its 2Q17 earnings.

Sunett is a sweetener used in a variety of beverages, confections, and dairy products throughout the world and is known for its reliability in regards to quality and supply.

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Celanese’s stock performance for the week ended March 24

For the week ended March 24, 2017, Celanese closed at $89.47, falling 1.8% for the week. The stock was trading 7.2% above its 100-day moving average of $83.45, indicating an upward trend. On a year-to-date basis, Celanese has risen 13.6%.

Celanese’s 14-day RSI (relative strength index) of 50 indicates that the stock is neither overbought nor oversold. An RSI of 70 indicates that a stock is overbought, and a score of 30 suggests that a stock is oversold.

Analysts have given Celanese a 12-month target price of $94.40, implying a potential return of 5.5% from its closing price of $89.47 on March 24, 2017. Celanese outperformed the PowerShares DWA Basic Materials Momentum ETF (PYZ), which fell 3.9% for the week ended March 24, 2017. PYZ invests 3.4% of its holdings in Celanese. The other top holdings of the fund include Chemours (CC), NewMarket (NEU), and FMC (FMC) with weights of 5.5%, 3.7%, and 3.8%, respectively, as of March 24, 2017.

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