Diageo Shares Claw Back Losses After Slump to Multi-Year Lows
Diageo shares have shown a recovery after hitting multi-year lows earlier this year due to weak demand for spirits. The stock has gained momentum following positive broker commentary and internal cost-cutting initiatives.
Why it matters
As a major player in the global spirits market, Diageo's financial health serves as a key indicator for consumer spending trends in the luxury and beverage sectors.
Shares in Diageo (LON: DGE) have staged a notable recovery after a punishing sell-off earlier this year drove the FTSE 100 drinks giant to its lowest levels in years, with technical indicators now flashing renewed bullish momentum.
The stock plunged sharply in late February, tumbling from around 1,874p to below 1,640p in a single session — a drop of more than 12% — as investors reacted to a disappointing trading update highlighting soft demand across key spirits categories, including tequila and premium whisky.
Selling pressure persisted through March, dragging shares to an intraday low near 1,350p, their weakest level in several years, with the Relative Strength Index (RSI) sinking into deeply oversold territory below 27 — a classic signal that the stock had been sold down too far, too fast.
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