FRANKFURT (dpa-AFX) - Shares from the defense sector took different directions on Friday than usual recently. Burdened by a disappointing outlook, the shares of Hensoldt fell by 5.6 percent, while those of Rheinmetall, one of the favorites in the DAX, rose by 2.6 percent and thus continued their record run.

Hensoldt fell short of market expectations with its forecasts for 2024. Short-term investors therefore probably cashed in on the shares of the defense electronics manufacturer for the time being. Rheinmetall shares, on the other hand, cost more than 410 euros for the first time in history. Investors had already set limits on the price of the newcomer to the stock market, Renk, and on Friday the shares continued the recent price consolidation with a discount of one percent. This refers to a phase of stagnating or falling prices after a strong rise.

Analyst Christian Cohrs from Warburg Research emphasized that Hensoldt had achieved its financial targets for 2023. However, he added that the result was characterized by extensive one-off effects on the cost side and that the net financial result was much lower than he had hoped. He therefore missed the positive aspects that could have helped the share price to rise further.

Traders also mentioned that Hensoldt's dividend was perhaps somewhat disappointing. According to the announcement, this is set to amount to EUR 0.40 for 2023, while the average market expectation was EUR 0.48.

Driven by rising defense spending in the wake of increasing armed conflicts around the world, defense stocks have risen sharply in recent months and years. Hensoldt has gained a good 30 percent so far this year and reached its highest price since April 2023 at just over 36 euros in mid-February. Unlike Rheinmetall, however, Hensoldt's record high of almost a year ago remains unattained./tih/niw/mis