Verallia Shares Hit New Historic Low at 18.70 Euros
On Tuesday, March 3, Verallia's stock price reached a new record low during the trading session, dropping to 18.70 euros, below its previous low of 18.74 euros achieved the day before. The glass packaging specialist's stock fell by 1.22% compared to the previous closing, now showing a decline of over 30% over the past year. This downturn occurs amid geopolitical tensions affecting all European markets and the energy costs of the glass sector.
Stock Performance Analysis
Verallia's stock price is now significantly below its main moving averages: the 50-day moving average (MM50) is at 22.17 euros and the 200-day moving average (MM200) at 24.68 euros, representing a gap of respectively 18.6% and 24.2% from the current level. This significant deviation indicates a bearish trend that has been established for several weeks, with the stock losing 8.51% over the last seven days and 21.36% over three months. The RSI indicator, which measures the speed and magnitude of price changes, is at 15, a rarely reached level indicating a pronounced oversold zone. Theoretically, such a low RSI could signal an excess of selling pressure, but it does not alone indicate a turnaround. The technical support threshold identified at 18.93 euros was breached during the session, which could lead to further sell-offs in the absence of a favorable catalyst.
Impact of Rising Energy Prices
The sharp increase in energy prices observed on March 3 poses an unfavorable context for Verallia. The production of glass packaging is an energy-intensive process, requiring furnaces to operate continuously at very high temperatures. However, European natural gas (TTF) jumped by about 25% due to the conflict in the Middle East, while Brent crude oil surpassed 80 dollars per barrel. The simultaneous surge in oil and gas prices mechanically increases the industrial bill for European glassmakers. Verallia had already suffered in recent quarters from the impact of a more moderate demand environment in the packaging market. The prospect of a sustained increase in energy costs, if disruptions around the Strait of Hormuz continue, could further weigh on the group's margins. The next meeting with the market is scheduled for April 22, when the first quarter 2026 results will be published, followed by the general assembly two days later, on April 24.
