European defence companies set to snap five-week winning streak

RENK AG

21/03/2025 10:01

** Shares in European arms makers, buoyed recently by the prospect of higher defence spending, fall on Friday

** An index of aerospace and defence companies .SXPARO down 1.2% at 0947 GMT and set to snap five straight weeks of gains

** "We have seen steep development in a short period, driving a natural profit taking," Tom Guinchard, equity research analyst at Pareto Securities says

** "The rationale for the positive share price development is motivated and intact, allowing the shares to stabilize at higher levels once short-term profit taking is offset by operational performance," he says

** Germany's Hensoldt HAGG.DE, Rheinmetall RHMG.DE and Renk R3NK.DE fall between 3% and 5%

** Italy's Leonardo LDOF.MI, France's Dassault Aviation AM.PA Sweden's Saab SAABb.ST and Britain's BAE Systems BAES.L are down between 0.9% and 3%

 (Reporting by Anastasiia Kozlova, Anna Pruchnicka)

 ((anna.pruchnicka@tr.com))