Euronext Shares Drop 2.5% and Slip Below Moving Averages Before Dividend Payment
The pan-European exchange operator experiences a significant drop in early afternoon trading, moving against the slightly upward trend of the CAC 40. The stock falls below its short-term moving averages and is among the largest declines in the Paris index, two days before the detachment of its dividend.
The Stock Falls Below its MM20 and MM50, Approaching the Support at €135.20
Euronext shares decline by 2.62% to €141.50, down from €145.30 the previous day, in a CAC 40 that is up by 0.29%. The stock is among the biggest losers in the index. The drop brings the weekly performance to -4.71% and the monthly performance to -5.29%, while the stock remains positive over three months (+6.47%). The price falls below its MM20 at €143.17 (gap -1.17%) and MM50 at €143.59 (gap -1.46%), after several sessions in contact with these averages.
The MM200 at €132.53 remains well below the current price (gap +6.77%), indicating that the medium-term trend is still upward despite the current decline. The RSI at 53 remains neutral, leaving room before a seller exhaustion signal. The next technical threshold to watch is the support at €135.20, about 4.5% away from the current price.
Dividend Detachment on Friday in a Context of More Restrictive Central Banks
The financial calendar sets the dividend payment for Friday, June 26, implying an imminent detachment of the coupon and partly explaining the technical adjustment of the price. This movement occurs as market operators navigate a more demanding environment: a note published on June 21 highlighted the coordinated restrictive turn of major central banks, with the ECB's first rate hike since 2023 and a firmer tone from the Fed and BoE. Barclays strategists cited believe that the phase of monetary support for equity markets has ended, which could increase volatility (the VIX has risen to 18.94, up by 9.61%).
Despite this, the stock had marked the strongest rise in the CAC 40 during the week of June 10, illustrating the value's sensitivity to phases of increased stock market volatility. After the detachment of the coupon on Friday, the holding of the support at €135.20 will be the next technical marker to measure the depth of the decline.
