Pernod Ricard Shares Drop 2% Amid CAC 40 Decline, Digesting Previous Rally
The French spirits giant retreats in the Parisian market, amidst a heavily burdened CAC 40 due to renewed tensions in the Middle East. This movement dampens the strong rally recorded the previous day, without undermining the recovery that has been underway since mid-June. In the background, the sectoral economic climate remains unfavorable for spirit exporters.
A Retreat Following a Geopolitically Pressured CAC 40
Pernod Ricard shares lose 2.03% at €64.54, within a CAC 40 that drops 2.02% to 8,266 points. The Paris session is part of a globally defensive climate: the DAX drops 1.69%, the VIX jumps 11.28% to 17.95, as the United States claims strikes against Iran and Tehran asserts it targeted American military installations in Kuwait and Bahrain. The stock follows the overall market movement without standing out: ranked 18th in the CAC 40, it remains distant from the session's sharpest declines. The decline merely softens the 4.5% rebound recorded the previous day, when the stock led the index. The weekly performance thus remains slightly positive, about +1% over 7 days, and gains nearly 4% over a month. In the background, the situation remains challenging for French spirit exporters: the FEVS reported a -10.9% drop in the value of cognac exports in the 2024 report, and -6.5% for all spirits. This context structurally weighs on the stock's market trajectory, still down nearly 28% over the year.
Stock Remains Above Short-Term Averages Despite Selling Pressure
Despite today's decline, the medium-term technical configuration has significantly improved. The price remains above the MM20 (€63.97) and MM50 (€63.43), with a gap of +0.89% and +1.75% respectively. However, the MM200 at €73.35 is still 12% above the price, indicating a still deteriorated long-term trend. The RSI at 57 remains in the neutral zone, without signaling any extremes. The identified support at €60.92 and resistance at €66.24, tested several times in recent sessions, limit the current movement. Regarding positioning, declared net short positions accumulate 3.05% of the capital, distributed among four funds, according to the reviewed declarations. This level remains high but has decreased by 0.23 points over thirty days, indicating a gradual reduction of the bearish bet rather than an intensification. A significant fraction of institutional investors remains positioned for a downturn, although the recent dynamics do not suggest a hardening. The next key deadline for investors will be the publication of the annual results, historically at the end of August or beginning of September for the group.
