- The recent news of the Russia-Ukraine conflict adversely impacted the global stock market leading to one of the biggest declines in markets of recent times.
- Many defence-linked stocks like BAE witnessed a surge in volume and buying interest from market participants.
The Russia-Ukraine conflict adversely impacted the global stock market leading to one of the biggest declines in markets of recent times. Many countries issued a travel advisory and urged their citizens to avoid travel to the Ukraine region.
Moreover, the share price of companies with business operations in the Russia and Ukraine market dropped considerably. The drastic fall in the market left investors worried with limited options to invest. However, defence-related stocks like BAE Systems Plc (year-to-date return: 9.53%) saw buying interest from investors amid rising tensions between the two countries.
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Many defence-linked stocks witnessed a surge in volume and buying interest from market participants. Let us explore 3 FTSE listed defence stocks that were in focus:
BAE Systems Plc (LON: BA.)
The defence sector company operates through five key divisions offering technology products across air, land, and maritime segments to its clients across 40 countries.
The company reported excellent business performance in 2021 with robust demand for its products. As a result, the company expects a higher sales growth and improvement in underlying EBIT for the full year. It will announce the financial result for the year ended 31 December 2021 on 24 February 2022.
BAE Systems Plc’s last close was at GBX 602.20 on 15 February 2022, with a market cap of £18,878 million.
Avon Rubber Plc (LON: AVON)
The company is engaged in the design and manufacturing of respiratory and ballistic protection equipment like next-generation helmets and body armour.
It recently received a five-year contract from the US Defense Logistics Agency to supply advanced combat helmets. The total value of the contract is around USD 204 million. The multi-year helmet contract follows the company’s previously awarded integrated head protection contract from the US Army.
Avon Rubber Plc’s last close was at GBX 1,140 on 15 February 2022, with a market cap of £355.6 million.
Qinetiq Group Plc (LON: QQ.)
FTSE 250 listed company operates in the defence and security market, manufacturing advanced material protection products like next-generation bomb suits. It operates through two key segments: global products and EMEA services.
The company has achieved excellent order intake from its clients, and the current order book stands at over £900 million as of the third quarter ended 31 December 2021. The company anticipates its full-year revenue and operating profits to align with market expectations.
Qinetiq Group Plc’s last close was at GBX 254.40 on 15 February 2022, with a market cap of £1,476 million.