Sanofi shares surge nearly 3% and defy a declining CAC 40
In a challenging trading session for the Paris index, Sanofi displays significant progress that stands out from the prevailing trend. The stock benefits from a defensive context, while several technology and industrial stocks suffer heavy losses in a market under pressure from central banks.
A 2.69% rebound that places Sanofi among the top gainers of the declining CAC 40
Sanofi closed at €75.23, up 2.69% compared to the last close on Friday, September 11 at €73.26. The stock ranks among the strongest gainers in the CAC 40, in an index that fell 0.89% during the session, weighed down by heavy losses in technology and electrical stocks. The pharmaceutical company's gains contrast sharply with the overall market sentiment: STMicroelectronics fell more than 7%, Schneider Electric also fell more than 7%, and Legrand nearly 7%.
Sanofi thus plays its role as a defensive stock in a context of heightened volatility, with the VIX advancing 9.47% to 17.34 points during the session. Over the week, the stock remains slightly down 1.35%, and over three months, the decline reaches 1.78%, a sign that underlying momentum remains hesitant despite today's rebound.
Moving averages still above the price, RSI approaching oversold territory
Despite the session's gains, Sanofi is trading below its three moving averages: the MA20 at €76.68, the MA50 at €76.27 and the MA200 at €78.34. The price at €75.23 therefore remains below these three benchmarks, at respectively 1.89%, 1.36% and 3.97% below them, which reflects a technical configuration that remains fragile despite today's rebound. The RSI at 34 is approaching the conventional oversold threshold at 30, reflecting an exhaustion of accumulated selling pressure over recent weeks.
The support at €73.25, tested on Friday at close, held firm, which likely contributed to today's rebound. The next resistance to watch is at €78.94, still 4.9% above the current price. Based on the analyst consensus, the stock is trading at approximately 8.8 times current year earnings, a contained multiple for a pharmaceutical stock of this size, with expected earnings per share growth of +5.8% year-over-year according to surveyed forecasts.
