FRANKFURT (dpa-AFX) - Defense sector stocks rebounded on Friday after their recent slump. The prospect of prolonged geopolitical conflicts has once again sparked investor interest in companies such as Rheinmetall, whose DAX-listed shares recently dropped to a one-month low. On Friday, the stock gained 2.6 percent. The previous day, it had fallen below €1550 for the first time since early February. Shares remain far from their October 2023 record high of €2000.
Shares of Renk showed even greater momentum at the end of the week, recovering seven percent and regaining part of the losses from the previous day. TKMS and Hensoldt also saw notable gains of up to four percent. The sector is eagerly awaiting the stock market debut of submarine supplier Gabler, scheduled for the coming Monday. As became known at the end of the week, another industry supplier, Vincorion, is also planning to go public.
Amid ongoing hostilities in the Middle East, debate is intensifying over whether a ground offensive is required to topple the Iranian government. No relief is in sight, as Iran's armed forces have announced plans to escalate their counterattacks less than a week after the outbreak of war. Meanwhile, U.S. congressional representatives have placed no limits on the military actions of U.S. President Donald Trump in Iran.
There is also no solution in sight for the war in Ukraine. According to Jefferies analyst Chloe Lemarie, recent news of U.S. security guarantees for Ukraine had put pressure on some sector stocks. However, in her view, the decline in share prices presents new opportunities for investors. In the aviation sector, she reiterated her preference for defense over the civilian segment on Friday./tih/nas/mis
