Societe Generale Shares Soar Nearly 7%, Breaking Through Resistance at €71.90

Significant Session Gains and Technical Breakthrough

Societe Generale's stock rises by 6.55% to €73.68 during the session, after closing at €69.15 the previous day. The bank outperforms Stellantis (+6.15%) and Kering (+5.81%), while the CAC 40 overall is up by 2.08%. During the session, the stock broke through its resistance level at €71.90, a barrier that had hindered rebound attempts since early June, and it remains above this level. This break consolidates an already strong long-term momentum, with a year-on-year gain of 53.47%. The stock is now 5.79% above its 20-day moving average (€69.65) and 14.36% above its 200-day moving average (€64.43), while the RSI at 50 remains neutral despite the magnitude of today's movement. A significant drop in the VIX, which fell by 16% to 18.66, reflects a clear easing in the markets following recent geopolitical tensions, a context favorable to cyclical banking stocks.

ECB Decision and Attractive Valuation Underpin the Rebound

The ECB's Governing Council raised its key interest rates by 25 basis points, bringing the deposit rate to 2.25% as of June 17. This first increase since September 2023 comes amid an inflation rate that returned to 3.2% in the eurozone in May, fueled by the energy component. A higher interest rate environment traditionally supports banks' interest margins, which explains the enthusiasm for French financial stocks today. According to the consensus of surveyed analysts, the stock is trading at approximately 9.6 times the expected earnings for the current fiscal year and 8.3 times those of the following year, multiples that offer room despite the annual rally. On the corporate front, the group announced on June 10 an investment of €100 million in Ardian's Averrhoa NBS fund, dedicated to nature-based solutions.