Defense powerhouse Hanwha Aerospace and Hyundai Rotem are showing strength early in the session on the 27th. Although defense stocks paused briefly as tensions between Iran and Israel seemed to have eased recently, signs of renewed conflict are prompting a rally to start again.
As of 9:16 a.m. on this day, Hanwha Aerospace is trading at 918,000 won, up 40,000 won (4.56%) from the previous trading day. Hyundai Rotem is also recording 205,500 won, up 8,800 won (4.47%).
U.S. President Donald Trump said on the 25th (local time) after attending the North Atlantic Treaty Organization (NATO) summit held in The Hague, Netherlands, "I believe that armed conflict could resume at some point," adding, "It may restart soon."
Israel and Iran recently reached a ceasefire agreement, but the possibility of renewed conflict is rising, which has worked in favor of defense stocks. On this day, NATO also agreed to increase defense expenditure to 5% of gross domestic product (GDP). Expectations are emerging that spending on defense by European countries will lead to an improvement in the performance of the defense industry.