Eiffage Shares Bounce Back Over 2% Boosted by Oil Price Drop
The construction and concessions group benefits from the significant rebound of the CAC 40, regaining ground in the mid-afternoon. The Parisian stock is moving in a Paris market buoyed by geopolitical easing in the Middle East and the fall in oil prices. This session allows the stock to consolidate several technical benchmarks after a lackluster May.
Eiffage Gains 2.29% to €129.40, Accompanying the CAC 40's Rebound
Eiffage's stock climbs 2.29% to €129.40 during the session, while the CAC 40 increases by 1.15% and the SBF 120 by 1.15%. The stock rises above its 200-day moving average (€123.55, a +4.73% difference) and remains above the MM20 at €124.48. However, the MM50 at €132.61 is still above the current price, a -2.42% difference, making the €132 level the next visible short-term friction zone. The RSI at 49 remains neutral, consistent with a stock just emerging from a consolidation phase (-2.52% over a month).
The movement is part of a favorable market context, following the announcement of an American-Iranian framework agreement extending the ceasefire and planning the gradual reopening of the Strait of Hormuz. Brent crude falls by 3.48% to $84.29, a relief that reduces pressure on fuel costs, a key parameter in the construction sector. In terms of ranking, Eiffage performs averagely in the CAC 40 this Monday, far from the cyclicals exposed to oil (Stellantis, Renault, Saint-Gobain) leading the rise.
Order Book Boosted by Recent Contracts and Deteriorated Building Sector Conditions
The day's rebound comes after a series of commercial signings over the past few weeks. On June 5, Eiffage secured a €110 million contract in Nuremberg for replacing two bridges, following a contract of over €120 million with Campus AI on June 3 and a twelve-year partnership signed with Arabelle Solutions (an EDF subsidiary) at the end of May in the nuclear sector. The group is also among the five companies shortlisted by EDF for the civil engineering of the EPR2, a program valued at €10 billion. Against this backdrop, the building sector in France remains weak: the Eurostat construction climate indicator stands at -17.2 in May, production has fallen by 2.8% year-on-year, and order books are contracting (indicator at -32).
Permits for housing accumulated over twelve months are down by 2%, while permits for non-residential premises have increased by 4%. In the public works segment, the FNTP reports a 10% decline in activity and a 16.8% decrease in concluded contracts over three months. The resistance at €132.61 (MM50) is the next technical benchmark to extend the rebound initiated this Monday.
