Covivio Shares Drop 2.5% Testing Key Support at €53.10
The office and hotel real estate company significantly drops in early afternoon trading in Paris, while the Paris market stalls. The stock briefly dipped below a closely watched technical threshold before rebounding. The context of higher long-term rates, hardened by the Fed's new projections, weighs on listed real estate values.
The Stock Falls Below Its Three Moving Averages After Testing Support at €53.10
Covivio loses 2.57% to €53.15 during the session, after briefly falling to €52.90 in the morning. The decline led to a test of the identified support at €53.10, breached intraday before a return just above the threshold. Simultaneously, the stock falls below its three moving averages: MM20 at €54.25 (-2.03%), MM50 at €55.41 (-4.08%), and MM200 at €55.54 (-4.30%).
The RSI remains neutral at 50, with no sign of seller exhaustion. The session nearly wipes out the gain shown over a month, reduced to +0.09%, while the loss over three months now stands at -5.34%.
Real Estate Companies Weakened by the Fed's Turn and Rising Long-Term Rates
The movement is part of an environment of less favorable rates for real estate companies. The Federal Reserve has kept its rates in the range of 3.50%–3.75%, but has removed any mention of future cuts and hinted at the possibility of a hike by the end of 2026, against a backdrop of American inflation at 4.2% in May. The market now incorporates an increased risk premium on long-term rates, a key parameter for the valuation of listed real estate assets.
The CAC 40 fares better (-0.06%), while the VIX rebounds by 6% to 17.41. On May 29, the group unveiled 030BLN, a 130-meter tower project in Berlin of 60,000 m². The next technical level to watch remains the €53.10 zone, whose holding will condition the short-term dynamics.
