Vinci Shares Drop 2% and Threaten Its 50-Day Moving Average
The stock of the concessions and construction group is experiencing a tough session mid-morning, slipping back into negative territory for the week. The stock is among the biggest losers on the CAC 40, following other penalized construction sector players. This movement occurs as the stock tests a key moving average downwards.
Vinci at the Lower End of the CAC 40, Approaching Its 50-Day Moving Average
Vinci shares have fallen 2.11% to €127.35, down from a last close at €130.10. The stock is the second biggest loser on the CAC 40, as the Paris index itself is down 0.34% at 8,356 points during the session. Bouygues (-2.21%) and Eiffage (-1.80%), two other French construction stocks, are also in the same downturn zone. In terms of indicators, the price is slightly below its 50-day moving average (€127.61), a key technical threshold whose downward crossing could pave the way to the support at €121.70.
However, the stock remains above its 200-day moving average (€124.28), with a gap of nearly 2.5%, indicating that the medium-term trend is not questioned. The RSI at 56 remains neutral, without an oversold configuration. Over seven days, the stock has declined by 1.77%, while it is up by 2.41% over a month.
Robust Order Book and Geopolitical Tensions in the Background
Today's decline is set against a backdrop of a tense market environment, marked by macroeconomic uncertainties that keep a risk premium on European assets. On the business side, the group announced that its subsidiary Vinci Construction has secured a €157 million contract for the second building of the new Reims hospital, with work extending over 45 months. This contract boosts an already substantial order book, while the group reported a slight rebound in highway traffic in May (+0.3% for the month), with a still negative annual total (-1.8%).
The European airport traffic context remains fragile: according to ACI Europe data published on June 4, passenger traffic in Europe fell by 0.7% in April, with London Gatwick (a Vinci concession) experiencing a decline of 8.8% for the month. The next financial milestone will be the publication of the semi-annual revenue, traditionally expected at the end of July, which will provide an opportunity to assess operational dynamics after a first quarter marked by a record order book.
