Trump's Ukraine Stance Boosts Defense Stocks: Renk Shares Surge 30% in September
US President Donald Trump's stance on Ukraine's resistance against Russia is having an impact on defense stocks. Renk, a German defense company, has seen its shares appreciate nearly 30% in September due to the ongoing conflict and Russian provocations towards NATO.
Trump, who began his second term on January 20, 2025, is set to decide on the possible delivery of Tomahawk missiles to the Ukrainian army. The final call lies with him, as confirmed by US Vice President J. D. Vance. Ukrainian President Volodymyr Zelensky has requested these missiles from Trump during their UN meeting. Tomahawks are long-range cruise missiles capable of precise attacks deep into Russian territory.
The Renk share has been on a upward trajectory, gaining 0.84% to 86.86 euros on Tuesday morning, following significant gains in recent days. This surge can be attributed to the potential escalation of the war, which could further boost defense spending and stock prices. Additionally, German Chancellor Friedrich Merz's proposal to use frozen Russian assets to support Ukraine's armament could lead to new contracts for Renk.
The potential delivery of Tomahawk missiles to Ukraine and the use of frozen Russian assets to fund Ukraine's armament could prolong the war, benefiting defense stocks like Renk. The company's shares have already seen significant gains, and further increases are likely if the conflict continues to escalate.
