Investors flock to Europe to buy defense stocks

Sheet Sunday News out in England wrote: “Investors have flocked in share of private corporations producing weapons, in the context of many countries donating weapons to Ukraine, many governments increase defense budgets. Shares of the French group Thalès are up 35% since the beginning of the war, while the Swedish group Saab is up 62%.

Thalès, listed on the Paris stock exchange, makes everything from military radars to drones. And Saab on the Swedish stock exchange is famous for its Gripen fighter aircraft.

The outbreak of war in Ukraine has strongly boosted shares of defense industry groups on European stock exchanges. (Artwork – Photo: The Economic Times)

Companies that produce non-lethal weapons, such as gas masks, helmets, bulletproof vests, etc., have also increased their shares by more than 20% in just a few weeks.

Since the beginning of March this year, many European countries have decided to sharply increase their military budgets. Sheet L’Express published in France for example: “The German chancellor changed the course of history when he announced an investment of 100 billion euros in the military”. However, the boss of France’s Dassault Aviation group still urges private investors to buy shares, because only money from the government cannot meet the capital needs of the defense industry at this time. . Dassault stock is also up 30% since the beginning of March

In the past, European financial investment funds were often very reserved with private corporations producing weapons. Sheet Svenska Dagbladet “Fund management companies and individual investors have been less skeptical, since the outbreak of hostilities in Ukraine,” wrote Sweden.

The European financial markets have a solid basis for confidence, as the European rearmament process is very large and must take many years. A German newspaper gives an example: “Thousands of bunkers in Germany have been dismantled and sold gradually since 2008. When the Berlin Wall fell, no one thought that war would happen in Europe again. Europe, with the risk of being bombed, or of being attacked with chemical or nuclear weapons.”

Procurement of weapons over the past decades has only prioritized combating armed groups like the Taliban, but dealing with terrorists hiding in caves is much different than dealing with a regular army with hypersonic missiles and rockets. strategic bombers. The situation has changed fundamentally, opportunities for the defense industry are also opportunities for shareholders.

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