Market Spotlight: Defence Stocks Soar on Ukraine Conflict

33868 market spotlight defence stocks soar on ukraine conflict

BAE Systems Rallying One of the big market themes we are seeing as a result of the conflict in Ukraine is a surge in stock prices of weapons manufacturers and armourers. With Ukraine heavily buying arms and NATO countries supporting the effort alongside their own purchases, defence stocks have ballooned in recent days. Looking ahead, the prospect of a lengthy conflict between Ukraine and Russia, as well as fears of a broader conflict developing, means that countries (particularly those in Europe) are likely to continue buying arms. We’ve already seen Germany dramatically increasing its defence budget, with other European nations likely to follow suit.One such company is BAE systems. The UK based arms, security and aerospace company which is the largest defence contractor in Europe, has seen shares rallying hard over the last week. The company’s stock price has jumped almost 30% since February 24th and while the rally has paused for now, further gains are likely to be seen near term.Technical ViewsBA.The rally above the prior 682.4 highs has seen price trading up to highs of 757.2. With both MACD and RSI firmly bullish, the focus is on further upside near term. While 682.4 holds as support, bulls can look for a break of the current highs target another increase in momentum and a further expansion higher. The bullish view remains in place while 682.4 holds.

Source: Tickmill

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