CAC 40 laggard: Legrand stock slides nearly 1.5%

A decline that keeps the price below its three moving averages

The Legrand stock loses 1.29% to €137.80, while the CAC 40 gains 0.12%. The stock is among the steepest declines on the Paris index. It has fallen 3.7% over the week, a decline that has brought it below its 20-day MA at €138.97 (gap of 0.84%) and then below its 50-day MA at €138.56 €. The 200-day MA, at €140.80, remains 2.13% above the current price, which makes a quick return to the €140 zone unlikely.

The RSI at 51 is neutral: the weekly decline has not pushed the stock into oversold territory. The movement is part of a series of difficult sessions. In early October, the stock had already fallen 2% despite two analyst price target increases, and it has since dropped below its resistance level of €146.15. The support at €132.35 is 4% below the current price.

A backdrop marked by French debt and the construction cycle

The Paris session is taking place as the 2027 budget is being examined by the National Assembly: the 10-year OAT yield stands at 4.86%, approximately 1.40 points above the German Bund. A vote on the first part of the bill is expected on October 20. On the activity front, construction conditions remain weak in Europe: the sector confidence indicator stands at -17.2 in France and -6.1 in the European Union, while residential building permits are down 9.5% year-on-year in France.

Legrand, whose demand is partly dependent on the construction cycle, had nevertheless raised its targets for 2030 on September 29, with organic growth targeted at 6 to 8% annually. The €132.35 support level is the technical level to watch in the coming sessions.