Alstom Shares Drop 3.66% Despite a 700 Million Euro Contract
The stock of the railway specialist declines sharply this Thursday, amid a general retreat in European markets. Alstom's shares fell by 3.66% to 23.97 euros, erasing some of the gains made over the year. This downturn occurs even though the company announced a major 700 million euro contract earlier in the week.
Market Downturn Amid Geopolitical Tensions
During the session, the CAC 40 drops 1.25% to 7,881 points, driven by a risk aversion climate due to geopolitical tensions in the Middle East. In this context, Alstom experiences a more pronounced decline than the Paris index, moving from 24.88 euros the previous day to 23.97 euros. Other industrial stocks listed in Paris also face sell-offs: Schneider Electric loses 4.33% and Airbus drops 2.79%. Over the past week, the stock has shown a decline of 1.76%, while its three-month performance is at -4.77%. Despite this recent decline, the stock still shows a nearly 20% increase over the year. The company had benefited from a positive catalyst last Monday, with the announcement of securing a systems contract worth approximately 700 million euros in the AMECA region, as part of a consortium valued at 2.75 billion dollars. However, this commercial success is not sufficient today to support the price against the widespread selling pressure.
Technical Analysis Indicates Downward Trend
From a technical analysis perspective, Alstom's stock price is now well below its 50-day moving average of 26.42 euros, indicating a short-term downward trend. However, the stock remains above its 200-day moving average (23.11 euros), a threshold that roughly coincides with the technical support identified at 23.02 euros. A downward breach of this area could increase the pressure on the stock price. The RSI, a momentum indicator, is at 51, which is a neutral zone that currently signals neither overselling nor overbuying. The lower Bollinger band, at 22.68 euros, provides an additional short-term reference point. The next major event for the group is scheduled for May 13, 2026, when Alstom will publish its annual results for the fiscal year 2025/2026. This date could be a turning point for the stock's trajectory in the coming weeks.
