Engie Shares Fall by 2.49%: Brent at $107 Shakes Energy Sector
Engie's stock price fell by 2.49% this Friday, March 20, closing at 26.61 euros compared to 27.29 euros the previous day. This decline is part of a challenging week for the energy company, with the stock losing 2.74% over seven days. During the session, the CAC 40 dropped by 1.40% to 7,698.43 points, amid heightened tensions in the energy markets due to the conflict in the Middle East.
Significant Drop as Energy Markets Experience Unprecedented Shock
Engie's significant decline occurs as the energy markets face an unprecedented shock. The Brent crude oil barrel surpassed the $107 mark this Friday morning, marking a 50% increase since the end of February, while the price of TTF gas has almost doubled over the same period. These surges are directly caused by the ongoing military conflict in the Middle East, a region that accounts for a major portion of global hydrocarbon exports.
This simultaneous spike in oil and gas prices is sending shockwaves through the entire listed sector. TotalEnergies fell by 1.85% and Shell by 1.21% during the session. For Engie, which is more focused on gas distribution and electricity production, the sharp rise in natural gas supply costs is a short-term pressure factor, even though the group has hedging mechanisms in place. The SBF 120 dropped by 1.39% to 5,832 points, indicating a generalized retreat in the Paris stock market. The VIX volatility index, measured on March 18, stood at 25.09, a level indicating high tension in the markets.
Despite Weekly Decline, Engie Maintains Strong Medium-Term Performance
Despite this week's decline, Engie's stock maintains a solid medium-term trajectory, with an increase of 19.43% over three months and nearly 54% over a year. The price remains well above its 50-day moving average, which is at 25.94 euros, indicating an underlying upward trend. The most relevant technical support is at 25.47 euros, a threshold to watch if the downward movement continues.
The RSI indicator, which measures the speed and intensity of price changes, has dropped to 37, a level close to the conventionally set oversold zone at 30. This rapid decline in the RSI indicates that selling pressure has intensified in recent days. The upcoming financial milestones for the group include the general assembly scheduled for April 29, followed by the publication of first-quarter results on May 7, two events that could provide shareholders with elements of visibility in a particularly uncertain energy environment.
