FRANKFURT (dpa-AFX) - The shares of Rheinmetall and Hensoldt continued their positive trend on Monday morning. They continue to benefit from the prospect of ample orders from Western countries to strengthen their defense forces and to support Ukraine in its fight against the Russian invasion. Rheinmetall rose by 2.4 percent to 344.80 euros in early trading, Hensoldt by just under 3 percent to 31.08 euros.

Rheinmetall shares thus climbed to another record high - their gain in the still young year 2024 thus rises to a good 20 percent, which means they have now almost caught up with the DAX leader and software group SAP. Hensoldt shares extended their annual gain to 27% and thus also took the lead in the MDax.

All eyes remain on the USA, where the debate about further US military aid for Ukraine continues. Following his talks with US President Joe Biden in Washington on Friday (local time), German Chancellor Olaf Scholz (SPD) expressed confidence that US military aid for Ukraine can be maintained.

In addition, Rheinmetall CEO Armin Papperger gave an interview in the "Handelsblatt" in which he spoke about the planned massive expansion of the production of artillery shells. "We are in the process of doubling or even tripling our capacities for powder, such as that required for the propelling charges of artillery shells, at individual sites," said the manager. By next year, Rheinmetall will be able to produce sufficient quantities to supply Europe. "All in all, we want to produce up to 700,000 artillery shells per year by 2025."

The 61-year-old also anticipates an increase in the defense budget after the expiry of the special budget for the Bundeswehr. "When the sum has been used up, there will have to be a significant increase," he said. Without an increase, it would be difficult to make Germany capable of defending itself. "There are only two ways to do this: either the defense budget is substantially increased or there is another special fund."/mis/bek/men