Defence stocks rose yesterday as Britain and its allies pledged £26billion in military aid for Ukraine.
The announcement late on Thursday helped spur a rally for BAE Systems, Britain’s biggest defence contractor, which climbed 2.2 per cent, or 43p, to 1968p. Engine maker Rolls-Royce added 3.7 per cent, or 45p, to 1271p, while ship and nuclear submarine firm Babcock rose 1.2 per cent, or 15p, to 1299p.
The sector was also given a boost by the announcement that Britain will spend more than £400m on long-range and hypersonic missiles in the current financial year.
Boost: Defence stocks rose as Britain and its allies pledged £26billion in military aid for Ukraine
The Government highlighted joint missile development programmes with France, Germany and Italy. Defence Secretary John Healey was meeting allies at the Munich security conference amid continued efforts to beef up military budgets in the face of Russian aggression.
‘To meet this new era of rising threats, we need hard power, strong alliances and sure diplomacy,’ Healey said. Also providing a boost to defence stocks yesterday was an upbeat set of results from French aerospace firm Safran, which forecast increased revenues and earnings for 2026 and revealed a rise in profits for last year.
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