FRANKFURT (dpa-AFX) - The share prices of defense companies rose on the first trading day of 2024. Rheinmetall shares, which are included in the Dax, even reached a record high of just under 300 euros on Tuesday, with a recent premium of 3.6 percent. BAE Systems and Babcock International shares rose on the London Stock Exchange.

The reason for the price gains was a positive assessment of the defense industry by the bank JPMorgan. In a study, analyst David Perry expected geopolitical tensions to continue in the new year: "Politicians in Europe and the USA will ultimately approve of higher defense spending and continue to support Ukraine". Rheinmetall and BAE Systems have recently received large and strategically important orders.

It is fitting that the Ukrainian capital Kiev was the target of a heavy Russian missile attack on Tuesday morning. President Volodymyr Zelensky warned the West not to show weakness in front of Russia. Because if Ukraine loses this war against Russia, Kremlin boss Vladimir Putin will bring the war closer to the West.

In the MDax, Hensoldt shares rose by 3.8 percent. However, the shares of the manufacturer of radar technology and optoelectronics had fallen by 27 percent from their record high in April last year. Investors were able to buy at a lower level./bek/tih/jha/