The war between Russia and Ukraine mandate Defense titles in orbit and in Piazza Affari (-2,5%) it is above all the beneficiaries Leonardo and Fincantieri with the actions that in mid-morning mark double-digit increases.
Stock market: what triggered the purchases of defense securities
What triggered the rush for purchases was above all the announcement of Germany, which arrived yesterday afternoon, on rearmament plan. In order to respond to the Russian invasion of Ukraine, Berlin has set aside 100 billion euros to strengthen your army.
"We are living in an epochal turning point. The world is no longer what it used to be. It is clear that we need to invest much more in the security of our country,” the chancellor said Olaf Scholz in front of the Bundestag. A real revolution that will lead the German defense budget to rise from 1,5 to 2% of GDP, thus hitting the target set by NATO that no European partner had ever met up to now.
From Leonardo to Rheinmetall: the titles that earn the most
On the Stock Exchange, the reaction of defense securities was immediate. In Piazza Affari, at the opening, Leonardo and Fincantieri they immediately entered the volatility auction due to an excess of upside. Once entered into trading, the shares gained 14,22% and 11,84% respectively. Similar trend for Thales in Paris, with the shares touching +13% settling at 103,90 euros. Take off Rheinmetall in Frankfurt: at 11 this morning the shares rose by 31,4% to 140,65 euros after hitting a high of 160 euros.
According to Equita Leonardo "'has a modest direct exposure to Germany, mainly through the 25% held in Hendsoldt", but "in the light of the current context" analysts expect that "the position taken by Germany can be followed by other announcements of increased military spending from Western countries".
Equita recalls that Italy currently invests less than 1,5% of GDP in defense, but Germany's decision could pave the way for a possible increase.
As far as Fincantieri is concerned, Equita points out that “the military business represents approx 25% of total volumes”and “ensures better margins than the cruise sector and a better payment profile”.
