Defense stocks recovered from their recent decline on Friday. The prospect of long-lasting geopolitical conflicts is causing defense stocks to rise.
The prospect of long-lasting geopolitical conflicts is now fueling investors’ interest in stocks like Rheinmetall again, after the DAX group’s share price recently fell to a one-month low. On Friday, the shares ultimately rose by 2.94 percent to 1,592.50 euros via XETRA. The day before they were quoted below 1,550 euros for the first time since the beginning of February. They are a long way from the 2000 euro record last October.
RENK shares were even more dynamic at the end of the week, making up for part of their previous day’s setback with an increase of 7.13 percent to 55.71 euros. TKMS also rose significantly by 3.27 percent to 93.10 euros. HENSOLDT meanwhile rose 2.57 percent to 73.70 euros. The sector is eagerly awaiting the stock market debut of submarine supplier Gabler, which is scheduled for next Monday. As it became known at the end of the week, another industry company, the supplier Vincorion, is aiming to go public.
Amid the ongoing hostilities in the Middle East, there is increasing debate about whether a ground offensive needs to be launched to overthrow the Iranian government. There is no relief in sight, as Iran’s armed forces have announced an expansion of their counterattacks almost a week after the start of the war. Meanwhile, US congressmen set no limits to US President Donald Trump’s military action in Iran.
There is also no solution in sight in the Ukraine war. According to Jefferies expert Chloe Lemarie, news about US security guarantees for Ukraine had recently put some sector stocks under pressure. In your opinion, the price decline brings new opportunities for investors. In the aviation sector, she therefore emphasized on Friday her preference for the defense sector over the civil sector.
/tih/nas/mis
FRANKFURT (dpa-AFX)
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