Pernod Ricard Leads CAC 40 After a Yearly Decline of 32%
The stock of the French spirits giant stands out in mid-morning trading in Paris, taking the lead in the flagship index in an otherwise directionless Parisian market. The rebound comes as the stock continues to be weighed down by a significant decline over the year.
Pernod Ricard at the Forefront of the CAC 40, Following Paris's Luxury Sector
Pernod Ricard is up 2.39% at €62.58 in mid-morning trading and leads the CAC 40. The Paris index is up 0.15% at the same time, showing no clear trend. The movement is part of an upward dynamic in the Paris luxury sector, with L'Oréal (+1.69%), Hermès (+1.64%), and EssilorLuxottica (+1.59%) also performing well. However, the backdrop remains challenging for French spirits exporters. The 2024 report by FEVS shows a 10.9% decline in cognac exports by value and a 6.5% overall decline in spirits. Over the year, the stock still shows a loss of 32.62%, and the decline reaches 13.85% over three months. Thus, today's rebound barely softens this underlying trajectory. The context echoes the rebound observed yesterday, already driven by the figures from Rémy Cointreau, which is also slightly up this morning (+0.78%).
Stock Stalls at Its 20-Day Moving Average as Short Selling Pressure Increases
Technically, the stock is at its 20-day moving average at €62.86 (a gap of -0.45%). Beyond this, the stock remains below its 50-day moving average (€63.99, a gap of -2.20%) and well below its 200-day moving average (€76.93, a gap of -18.65%), confirming a deteriorating underlying trend. The RSI at 41 remains neutral, indicating neither overbought nor oversold conditions. The support identified at €60.70 held at the end of May, with the next resistance at €66.06. Regarding positioning, four funds have accumulated a net short position of 3.29% of the capital according to reviewed declarations, up by 0.25 points over thirty days. This level reflects continued caution among institutional investors, without a sharp turn in recent periods. The measured increase in combined shorts deserves attention but is not sufficient alone to characterize increased mistrust. Crossing the 20-day moving average at €62.86, then moving towards the resistance at €66.06, are the technical thresholds to watch in the coming sessions.
