Armament values skyrocket – 100 billion for the Bundeswehr
The Rheinmetall Defense logo. Photo: Hauke-Christian Dittrich/dpa
© dpa-infocom GmbH
In times of war there are not only losers. The prospect of a significant increase in the defense budget is causing defense companies to soar on the stock market.
The prospect of multibillion-dollar orders gave defense company stocks a tailwind on Monday in a market sluggish over the Ukraine war.
In view of the Russian attack on Ukraine, Germany wants to massively upgrade the Bundeswehr. She is to receive 100 billion euros.
Rheinmetall shares jumped at the top by around a quarter to 133.50 euros. The shares of the defense electronics manufacturer Hensoldt went up by almost half to 21.75 euros. Thyssenkrupp papers were also in demand with a plus of a good 8 percent. BAE Systems rose by almost 14 percent on the London Stock Exchange. In Paris, Thales rose in price by 13 percent.
In view of the planned additional expenditure, Germany could invest an estimated 33.5 billion euros per year in the equipment of the Bundeswehr, around four times as much as before, according to the analysts from the investment house Stifel. Since Rheinmetall is the largest supplier of the Bundeswehr’s main weapon systems, the Düsseldorf-based company should be able to secure a significant share of the sum.