In early trading on the 16th, LIG Defense&Aerospace (LIG D&A) is surging 29%.
As of 9:25 a.m., LIG D&A is trading at 1,089,000 won, up 244,000 won (28.88%) from the previous session.
At the same time, Korea Aerospace Industries (KAI) (8.67%) and Hanwha Aerospace (11.07%) are also strong.
On this day, analysts in the securities industry said the appeal of defense companies is expected to grow following the cease-fire agreement between the United States and Iran.
Kang Tae-ho, an analyst at DS Securities, said, "Even after the end of the war, Iran's missile capabilities remain intact, and Hezbollah and Houthi rebel forces are still present," adding, "Demand to strengthen air defense capabilities in the Middle East is structurally likely to continue."
He also said LIG D&A, Hanwha Aerospace, and Hanwha Systems' "Cheongung-II" could be exported to several Middle Eastern countries. Korea Aerospace Industries (KAI) is also known to be in talks with the United Arab Emirates (UAE) and Saudi Arabia on exports of the KF-21.
There was also news that LIG D&A signed a strategic partnership with Germany's Rheinmetall Air Defence and will seek to tap the European and North Atlantic Treaty Organization (NATO) defense markets through steps including establishing a joint venture (JV).