Solvay shares rebound 2.5% after nine-month results
The Belgian chemicals group recovers mid-session, while the Paris market is well oriented. The stock reacts to the publication of its results for the first nine months, but remains well below its longer-term moving averages.
A 2.56% rebound after results marked by the Middle East conflict
Solvay shares trade at €24.06 during the session, up 2.56% from the previous day, while the SBF 120 gains 1.5%. This morning the group published its results for the first nine months: the Middle East conflict weighs for €25 million on underlying EBITDA in the third quarter, compared with €20 million in the second quarter.
The shutdown of the peroxide plant at the Sadara complex in Saudi Arabia accounts for most of this impact. Nevertheless, the stock remains down 9.5% over three months, a decline that deepened after the downward revision of annual targets in mid-October.
A stock still below its moving averages, with rare earths as a key issue
In terms of price levels, Solvay is trading just below its 20-day moving average (MM20), at €24.20 (a gap of 0.58%), while the 50-day moving average (MM50), at €24.93, sits 3.5% above the share price.
A break above the MM20 would be the first sign of a move back toward this area. The RSI at 46 remains neutral: the day's rebound has not yet changed the stock's configuration.
On the fundamentals, the group signed on Wednesday an agreement to secure rare earths in Brazil starting in 2028, intended to supply its La Rochelle site. The raw material comes from a Brazilian mining project that has not yet entered production. The support at €23.24 and the resistance at €25.48 now frame the observed trading range.
