Vinci Shares Bounce Back by 1.5% but Remain Weighed Down by Oil Surge
The stock of the concession and construction group regains some ground in early afternoon trading, within a positively oriented CAC 40. The rebound is part of a broader movement among French cyclical stocks, while the value remains penalized over the month by rising oil prices and geopolitical uncertainties.
A 1.65% Rebound Propels the Stock Among the Most Sought-After in the CAC 40
Vinci's stock gains 1.65% reaching €119.90, marking one of the most significant rises in the CAC 40, which is up by 0.54%. The stock benefits from a renewed appetite for French cyclical stocks, alongside a general rebound in the industrial sector. Eiffage is up by 1.19% and Bouygues by 1.28% in the same movement. However, this surge is not enough to offset a significant decline: the value is still down by 7.5% over the month and nearly 13% over three months, partly due to the spike in Brent crude, which jumps more than 3% to $90.94 a barrel amid tensions in the Strait of Hormuz. Oil impacts the group's cost structure through the fuel used in its construction and concession activities. Moreover, the business environment remains mixed for the group. Passenger traffic in Europe increased by 3.2% in May according to ACI Europe, directly supporting the group's airport activities, while the building sector in France continues to deteriorate with a construction climate at -18.2 and housing permits down by 5.5% over twelve months.
Stock Remains Below Its Three Moving Averages Despite Session Recovery
Today's rebound is not sufficient to bring the stock price above its moving averages. At €119.90, the value remains below the MM20 (€125.87, gap -4.74%), MM50 (€127.61, gap -6.04%) and MM200 (€124.28, gap -3.52%), with the MM200 being the closest technical hurdle to overcome for a reversal. The RSI at 56 indicates a return to the neutral zone after the recent decline, while the MACD moves into positive territory, at 0.79 against a signal line at -0.08. The configuration remains fragile as long as the MM200 is not reclaimed. In other news, VINCI Energies launched on July 16 an OPA at €67.50 per share on All for One, in digital infrastructure services, and the group also secured a German contract for the deployment of charging stations for heavy-duty vehicles.
