Defense stocks showed a broad increase on the 22nd. Following a series of declines, the stock prices have fallen, leading to an influx of buying interest at lower prices.
As of 9:13 a.m. on this day, Hyundai Rotem is trading at 182,400 won, up 8,600 won (4.95%) from the previous trading day. Hanwha Aerospace rose by 4.92%, and LIG Nex1 increased by 6.16%, showing strength, indicating that defense-related stocks are generally strong.
Defense stocks were a key contributor to the rise of the domestic stock market in the first half of the year, but showed somewhat disappointing performance in the second half. With forecasts suggesting the end of the Russia-Ukraine war and analysis indicating that stock prices are overvalued relative to earnings, the upward trend in stock prices has reversed. So far this month, defense stock prices have fallen by about 10% to 20%.
However, with geopolitical tensions still in place and export performance continuously expanding, the decline in stock prices is being interpreted as a buying signal. Lee Dong-heon, an analyst at Shinhan Investment Corporation, noted, "As the military buildup in various countries and the expansion of exports by domestic defense companies continue, domestic defense stocks are unlikely to easily falter."