Veolia Shares Drop 4.35% Midday, Weighed Down by Gas Price Surge
Veolia Environnement's stock significantly dropped this Tuesday, March 3, falling 4.35% to 33.17 euros by midday, after closing at 34.68 euros the previous day. This decline is part of a session marked by geopolitical tensions related to the conflict in Iran, impacting all European markets. The environmental services group thus sees some of its gains from the past three months diminished.
Technical Indicators Reflect a Slowdown
Today's decline brings the price of Veolia Environ. below its 20-day moving average, which stands at 33.65 euros, signaling a weakening of the recent upward momentum. However, the stock remains well above its 50-day moving average (31.48 euros), confirming that the medium-term underlying trend is still positive. The RSI, which was at 71 before this session, indicated an overbought zone, meaning that the buying pressure from the previous weeks had become statistically excessive. Therefore, today's correction appears technically coherent, following a nearly 14% increase over three months and more than 15% over a year. The next identifiable resistance threshold is at 35.96 euros, a level the stock has not managed to sustainably surpass.
Energy Price Spike Impacts Operational Costs
The significant rise in energy prices observed this Tuesday, with European natural gas (TTF) jumping nearly 25% and Brent crude exceeding 80 dollars per barrel, provides a relevant context for Veolia Environnement. The group, heavily involved in water treatment, waste management, and energy services, is directly affected by fluctuations in energy costs, which weigh on its operational expenses. While contractual indexing mechanisms partially offset these surcharges, a sudden and prolonged increase can temporarily compress margins, particularly in thermal activities and energy recovery. This situation occurs as the group's financial calendar schedules the annual general meeting on April 23, followed by the release of first-quarter financial information on May 6. These events will allow for a more precise assessment of the potential impact of the energy situation on the group's results in the coming months.
