ISTANBUL

Defense industry stocks limited their declines in equity markets although the risk appetite slowed due to ongoing fighting between the Israeli army and Hamas militants.

Stock had a negative start to the new week amid news in the Middle East and dovish statements of central bank officials helped to reduce the risk perception.

Defense stocks moved upward worldwide. In the US, Lockheed Martin gained 8%, RTX Corp rose 4.6%; L3Harris Technologies added 10%; General Dynamics was 8.4% higher and Northrop Grumman was up 11.4%.

British BAE Systems’ shares rose 4.02%, French Dassault and Thales’ shares were up 4.15% and 4.26%, respectively, German Rheinmetall AG shares added 4.83% and Italian Leonardo shares gained 5.29%.

In Türkiye, Aselsan shares added 7.23% on Monday, while Asahi Kasei and JFE Group shares in Japan were up 1.4% and 2.9%, respectively; Hyundai Rotem and Hanwha's shares in South Korea rose 2.8% and 3.5%, respectively, and China Aerospace Science and Technology Corporation's was up 3%.

Analysts said there is concern about the expansion of the conflict, and defense companies stand out as potential winners because of the possibility of fighting spreading to a wider area.

Transportation stocks

Despite the rise in defense stocks, it was seen that airline companies especially led the downward trend in stock markets.

In the US, United Airlines shares fell 4.9% on Monday, Delta Air Lines was down 4.7% and American Airlines was off 4.1%.

Lufthansa lost 4.2% in Germany and Turkish Airlines and Pegasus fell 4.7% and 6%, respectively.

*Writing by Gokhan Ergocun