Arkema Shares Drop 2.2%: Brent at $108 Weighs on Chemical Companies
The specialty chemicals company's stock fell 2.2% this Thursday, in a Paris market weakened by geopolitical tensions in the Middle East. Arkema is trading at 57.75 euros, erasing some of the rebound accumulated over the last seven days (+4.4%).
Market Downturn Amid Geopolitical Strains
During the session, the CAC 40 fell by 1.25% to 7,881 points, dragging most industrial stocks down with it. The SBF 120 lost 1.26% over the same period. The escalation of tensions between Washington and Tehran, following Iran's denial of any ceasefire request and the American promise to continue strikes for several weeks, heavily impacts the market. The price of Brent crude jumped about 6% in 24 hours to reach $108, an increase that directly affects the production costs of chemical groups, which are major consumers of energy and petroleum derivatives. Arkema, whose activity relies on the transformation of raw materials from petrochemicals, is not immune to this pressure. Other industrial stocks listed in Paris are experiencing even more pronounced declines: Schneider Electric is down 4.33% and Airbus drops 2.79%. Over a year, the stock has declined by 19.06%, although the three-month dynamic remains positive (+10.74%), indicating a recovery movement that began earlier in the year.
Technical Outlook for Arkema
Despite the decline this Thursday, Arkema's technical setup retains some support points. The price of 57.75 euros remains positioned above the 50-day moving average (56.60 euros) and the 200-day moving average (56.24 euros), an alignment that reflects the persistence of a short and medium-term upward trend. The RSI, at 60, is in the neutral-high zone, without any overheating or overselling signals. The nearest resistance is at 61.95 euros, a level that the stock has not yet managed to surpass during its recent rebound. Should the correction continue, the identified support at 50.50 euros would constitute a significant technical floor, located approximately 12.5% below the current price. On the calendar, the next milestone likely to provide new fundamental elements is the publication of the first quarter 2026 results, scheduled for May 6, followed by the annual general meeting planned for May 21. These events will shed light on the group's ability to absorb the recent rise in energy costs and on its outlook for the rest of the fiscal year.
