Rexel Shares Drop 4.6% Midday Amid Iranian Shock

Technical Indicators Highlight Short-Term Weakness

Rexel's stock has fallen below its 50-day moving average, currently at €35.25, signaling short-term fragility. This confirms the weakening observed over the past week, with a weekly performance of -5.65%. The price is now flirting with its technical support threshold identified at €34.19, a level whose breach could intensify selling pressure. The RSI, a momentum indicator, stands at 37, indicating a zone of weakness without signaling an oversold condition. In the longer term, the 200-day moving average, set at €29.70, remains well below the current price, which puts the ongoing correction into perspective considering the 32.77% gain recorded over the year. The quarterly performance remains positive at +6.63%, indicating that the day's movement is part of a consolidation phase rather than a fundamental reversal.

Energy Market Tensions Impact Session

Today's session is marked by significant tension in the energy markets following the initiation of military operations in Iran. Brent crude has jumped to around $80 per barrel, while European natural gas (TTF) has surged nearly 25%, particularly due to the circumvention of the Strait of Hormuz by major shipping companies. This sudden increase in energy costs creates uncertainty for companies in the electrical equipment distribution sector, whose activities are closely linked to the cycles of the construction and industrial sectors, both sensitive to energy prices and supply costs. European stock markets are generally retreating by 1 to 3%, with observers noting, however, that the market's reaction has been relatively orderly given the magnitude of the conflict. Rexel's sharper decline can be explained by a profit-taking move after the strong gains accumulated in recent months. The monthly volatility of the stock, measured at 6.91, remains moderate, suggesting that the adjustment is occurring without excessive nervousness at this stage.