BNP Paribas Stock: 12.18% Drop Over the Week Following Unfavorable US Verdict
BNP Paribas stock has had a particularly difficult week on the Paris markets. The share of France's largest bank by market capitalization lost 12.18% over five sessions, closing on Friday at 68.48 euros. This decline occurred while the CAC 40 and the SBF 120 respectively posted gains of 0.45% and 0.53% over the same period.
Sharp Decline Triggered by US Jury Decision
The week was marked by a sharp drop on Monday, October 20, where the stock lost nearly 8% during the session. This sudden fall followed the decision of a New York jury, which on the previous Friday found the bank complicit in atrocities in Sudan. According to this judicial decision, BNP Paribas allegedly organized commercial transactions whose proceeds indirectly financed the army and militias of Omar Al-Bashir's regime between 2002 and 2008. This class action involves 23,000 plaintiffs and could lead to significant financial penalties. Trading volumes reflected the market's reaction: over 13 million shares were traded on Monday, a level significantly higher than the weekly average. The following sessions saw volumes normalize, with about 4.9 million shares traded on Tuesday, before falling to 2.6 million on Wednesday. The stock was trading at 69.10 euros before opening on Monday, ending the day at 67.93 euros, erasing several weeks of gains. Over the past year, the bank has still posted a positive performance of 4.98%, despite this recent correction.
Technical Analysis Shows Weakened Momentum
Technical analysis reveals a marked weakening of the stock's momentum. The share is now trading well below its 50-day moving average, set at 77.05 euros, and even slightly below its 200-day moving average at 75.24 euros. The RSI has retreated to 27, a level that indicates intense selling pressure in the recent period. The negative MACD line at -2.25 confirms this short-term bearish trend. Bollinger Bands currently frame the price between a lower bound at 67.27 euros and an upper bound at 81.58 euros, with the stock trading close to the lower support of this channel. Monthly volatility stands at 10.11, reflecting recent tensions in the case. The immediate support threshold is at 67.93 euros, while the first resistance is established at 80.33 euros. A negative beta coefficient of -0.05 also indicates a weak correlation with the movements of the reference index. The bank is scheduled to publish its third-quarter results on October 28, a deadline that could shed new light on the group's trajectory in a tense judicial context.
