Rising Tensions Between US and Iran Boost Defense Stocks in South Korea
As the United States intensifies military pressure on Iran, investor interest in defense stocks is once again on the rise.
On the 20th, Hanwha Aerospace, a leading player in the defense sector, saw its stock price soar by 93,000 won (8.09%), closing at 1,242,000 won. This surge increased its market capitalization to 64.417 trillion won, allowing it to overtake HD Hyundai Heavy Industries and KB Financial to rank ninth among South Korean companies. Other major defense firms also experienced notable gains, including Hanwha Systems (up 9.49%), LIG Nex1 (up 5.08%), Hyundai Rotem (up 4.76%), and Korea Aerospace Industries (up 1.43%). Smaller defense stocks listed on the KOSDAQ market, such as Furstek (up 26.08%), Solid Defense (up 11.82%), and Big Tech (up 11.21%), also saw significant increases.
The sentiment surrounding defense stocks, which had been sluggish earlier this month, shifted dramatically after the Lunar New Year holidays. This change is attributed to the breakdown of nuclear negotiations between the US and Iran and indications that an attack on Iran may be imminent. On the 19th, former President Donald Trump stated at the Donald Trump Peace Institute in Washington, D.C., "It has been proven that reaching a meaningful agreement with Iran over the past few years has not been easy, but we need to achieve a meaningful agreement; otherwise, bad things will happen." He also referenced last years surprise strike on Iranian nuclear facilities, suggesting that "we may need to take a step further."
The escalating tensions between the US and Iran could further fuel the rise of South Korean defense stocks, including Hanwha Aerospace. According to Shinhan Investment Corp, major defense stocks surged by an average of 37% last month, although they had decreased by 5% as of the 19th of this month. The dramatic rise in January was influenced by the USs surprise attack on Venezuela, increased defense spending, and territorial claims over Greenland.
Yu Seung-min, a researcher at Samsung Securities, noted that "until last year, both sides had not crossed red lines, but this time..." The future developments will be closely monitored by investors and analysts alike as the geopolitical landscape continues to evolve.
On the 20th, Hanwha Aerospace, a leading player in the defense sector, saw its stock price soar by 93,000 won (8.09%), closing at 1,242,000 won. This surge increased its market capitalization to 64.417 trillion won, allowing it to overtake HD Hyundai Heavy Industries and KB Financial to rank ninth among South Korean companies. Other major defense firms also experienced notable gains, including Hanwha Systems (up 9.49%), LIG Nex1 (up 5.08%), Hyundai Rotem (up 4.76%), and Korea Aerospace Industries (up 1.43%). Smaller defense stocks listed on the KOSDAQ market, such as Furstek (up 26.08%), Solid Defense (up 11.82%), and Big Tech (up 11.21%), also saw significant increases.
The sentiment surrounding defense stocks, which had been sluggish earlier this month, shifted dramatically after the Lunar New Year holidays. This change is attributed to the breakdown of nuclear negotiations between the US and Iran and indications that an attack on Iran may be imminent. On the 19th, former President Donald Trump stated at the Donald Trump Peace Institute in Washington, D.C., "It has been proven that reaching a meaningful agreement with Iran over the past few years has not been easy, but we need to achieve a meaningful agreement; otherwise, bad things will happen." He also referenced last years surprise strike on Iranian nuclear facilities, suggesting that "we may need to take a step further."
The escalating tensions between the US and Iran could further fuel the rise of South Korean defense stocks, including Hanwha Aerospace. According to Shinhan Investment Corp, major defense stocks surged by an average of 37% last month, although they had decreased by 5% as of the 19th of this month. The dramatic rise in January was influenced by the USs surprise attack on Venezuela, increased defense spending, and territorial claims over Greenland.
Yu Seung-min, a researcher at Samsung Securities, noted that "until last year, both sides had not crossed red lines, but this time..." The future developments will be closely monitored by investors and analysts alike as the geopolitical landscape continues to evolve.
Like
0
Upvote0
- PrevIntense Competition in Financial Products for Senior Customers
- NextExpectations Rise for Gaming and Bio Stocks Amid Market Growth
신영*
코리아 핀테크 위크 2023 멋지네요
이동*
정말 최고예요!
한혜*
정말 미래적인 기술이네요. 어서 빨리 상용화 되었으면 좋겠습니다.
No comments yet.