Pernod Ricard Stock Drops 2% and Falls Below Its Moving Averages
The French spirits giant is notably down on the Paris stock exchange, going against a slightly rising CAC 40. This movement erases the gains from previous sessions and brings the stock below its short-term technical benchmarks. Rémy Cointreau is experiencing a similar trend, amid a still deteriorating sector environment for French exporters.
A Decline That Brings the Stock Below Its 20 and 50 Day Moving Averages
Pernod Ricard stock fell 2.15% to €62.78, down from a close of €64.16 the previous day. The stock ranks at the lower end of the CAC 40 as the index climbs 0.38% to 8,283.90 points. Rémy Cointreau falls in similar proportions (-2.22%), indicating a movement specific to the segment of spirits exporters.
The decline brings the price below the 20-day moving average (MM20) of €64.01 (a gap of -1.92%) and the 50-day moving average (MM50) of €63.42 (a gap of -1.01%), erasing the gains made during the 4.5% jump on July 7. The gap to the 200-day moving average (MM200) of €73.23 remains significant, at -14.27%, consistent with a nearly 32% decline over the year. The RSI at 50 indicates a balance between buyers and sellers, without extreme configurations, while the support at €60.92 forms the next threshold to watch under the current prices.
A Sectoral and Macroeconomic Context That Continues to Pressure Exporters
The situation for French spirits remains unfavorable: according to the 2024 report from FEVS, cognac exports have fallen by 10.9% in value and the entire spirits sector by 6.5%. This backdrop has weighed on groups exposed to China and the United States, including Pernod Ricard, for several quarters. Concurrently, the FOMC minutes published on July 8 show the Fed remains focused on inflation, which limits expectations for a rapid decrease in rates and impacts the valuations of exporters sensitive to the dollar. On the shareholder front, net short positions declared reach 3.05% of the capital, distributed among four funds according to the latest declarations (last declaration on July 1).
The total has decreased by 0.19 point in a month, after having reached 3.24%. This level remains high and signals the persistence of investors positioned for a decline or as a hedge, without indicating a recent acceleration. The support at €60.92 is the next technical reference in case the decline continues.
