Defense stocks rise amid Israel-Palestine conflict
As concerns grow over the expansion of the conflict between Israel and Hamas, defense industry stocks have risen globally, while transportation stocks have seen a decline.
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The clashes that began over the weekend between Israel and Palestinian groups, primarily the Izz ad-Din al-Qassam Brigades, have dampened global risk appetite, though defense industry stocks have limited the decline in equity markets.
Although stock markets started the new week on a negative note following the news flow from the Middle East, "dovish" statements from central bank officials helped reduce investors' risk perception.
The upward trend of defense stocks globally has drawn attention.
"DEFENSE COMPANIES HAVE EMERGED AS POTENTIAL WINNERS"
Analysts stated that there is concern over the expansion of the conflict, and that defense companies have emerged as potential winners due to the possibility of the struggle spreading to a wider area.
- In the US, Lockheed Martin shares gained 8 percent, RTX Corp shares 4.6 percent, L3Harris Technologies shares 10 percent, General Dynamics shares 8.4 percent, and Northrop Grumman shares 11.4 percent.
- British BAE Systems shares rose 4.02 percent, French Dassault Aviation S.A. and Thales shares rose 4.15 percent and 4.26 percent respectively, German Rheinmetall AG shares rose 4.83 percent, and Italian Leonardo S.p.A shares rose 5.29 percent.
- Domestically, Aselsan shares gained 7.23 percent yesterday, while today in Japan, Asahi Kasei and JFE Holdings shares rose 1.4 percent and 2.9 percent respectively; in South Korea, Hanwha and Hyundai-Rotem shares rose 2.8 percent and 3.5 percent respectively; and in China, China Aerospace Science and Technology Corporation shares gained 3 percent.
TRANSPORTATION STOCKS SUFFERED LOSSES
Despite the rise in defense stocks, it was observed that airline company shares, in particular, led the downward trend in equity markets.
- In the US yesterday, United Airlines shares fell 4.9 percent, Delta Air Lines shares 4.7 percent, and American Airlines shares 4.1 percent; in Germany, Lufthansa shares fell 4.2 percent; and domestically, Turkish Airlines and Pegasus shares declined 4.70 percent and 6 percent respectively.