Vicat Shares Drop 5.72% During Session, Hitting Multi-Week Low
This Thursday, the cement company experienced a sharp decline in a Parisian market weighed down by geopolitical tensions in the Middle East. The stock fell by 5.72% to €61.00, marking its largest single-session drop in several weeks, while the CAC 40 index fell by 1.25% during the session.
Vicat's Stock Nears Critical Support Level
Vicat's shares are trading at €61.00, dangerously close to its support threshold of €59.90. This decline brings the underperformance to nearly 20% over three months, erasing a significant portion of the 20% rebound recorded over the year. The stock is now trading well below its 50-day moving average (€70.38) and its 200-day moving average (€65.94), both indicators of a short and medium-term bearish trend. The RSI, at 49, is in a neutral zone, suggesting the possibility of further decline towards the support without the stock being considered oversold yet.
The SBF 120, which includes Vicat, lost 1.26% during the session, but the cement company's drop far exceeds that of the index. Other industrial stocks listed in Paris are also suffering this Thursday: Schneider Electric is down 4.33% and Airbus 2.79%, illustrating the widespread pressure on the industrial sector.
Session Marked by Increased Volatility Due to Tensions Between Washington and Tehran
Today's session is characterized by increased volatility due to the escalation between Washington and Tehran. Brent crude jumped about 6% in twenty-four hours to reach around $108 per barrel, following Iran's denial of a potential ceasefire. For a company like Vicat, whose cement activity is highly energy-intensive, the surge in crude oil prices mechanically weighs on production cost expectations, particularly for clinker firing. This factor adds to an already tense market context, with the VIX remaining at a high level of 25.25 points.
The upcoming financial deadlines for the group could provide more visibility. The general meeting is scheduled for April 10, followed by the publication of the first quarter revenue on May 4. These events will be an opportunity to assess the concrete impact of the energy and geopolitical situation on the cement company's operational margins.
