SES Shares Plunge Nearly 6%, Among the Worst Declines in the SBF 120
The Luxembourg-based satellite operator undergoes a significant correction mid-session, moving against the trend of a broadly bullish Paris market. The geopolitical easing in the Middle East, which boosts cyclical stocks and the airline sector, seems to impact defense and satellite telecom players. The stock is among the biggest losers in the SBF 120.
A Drop of Nearly 6% Places SES at the Bottom of the SBF 120
SES shares fall by 5.76% to €7.78, while the SBF 120 rises by 1.03% and the CAC 40 by 1.04%. The stock is among the largest declines in the SBF 120, just behind Eutelsat (-6.4%), in a parallel movement affecting both European satellite operators in the same session. This decline occurs in a specific context: markets welcome the framework agreement announced between the United States and Iran, which extends the 60-day ceasefire and foresees the gradual reopening of the Strait of Hormuz. Brent crude drops about 4%, boosting the airline, automotive, and cyclical sectors, but diverts flows from defensive and space connectivity stocks that had benefited from the tense context. Over seven days, the stock has lost 6.21%, while maintaining a performance of over 30% over three months and over 50% over a year.
The Stock Falls Below its 20-Day Moving Average and Tests a Support at €7.38
The day's drop significantly pushes the price below its 20-day moving average, located at €8.63, with a negative gap of nearly 10%. The stock still has a cushion against its 50-day moving average at €7.58 (+2.6%) and remains well above its 200-day moving average at €6.47, indicating that the underlying bullish trend remains intact despite the consolidation. The RSI at 51 indicates a neutral situation, without an oversold configuration despite the magnitude of the decline. The support zone at €7.38 becomes the next point to watch, as the stock approaches it after losing nearly 10% from its late May highs of €8.65. The next operational milestone remains the announced deployment in early June of multi-orbit connectivity aboard 100 Airbus aircraft from the Mexican airline Viva.
