On Wednesday, President Donald Trump delivered a major address, declaring his intention to strike Iran forcefully over the next two to three weeks. This announcement shattered hopes for peace, triggering a sharp rise in domestic defense stocks.
Trump issued a stark warning: if negotiations fail, he might target all of Iran’s power plants. He also threatened to attack oil facilities, describing them as the easiest targets to eliminate any chance of Iran’s reconstruction.
As of 10:44 a.m. on Thursday (Korean time), Hyundai Rotem was trading at 202,500 KRW (approximately 134 USD), up 13,700 KRW (approximately 9 USD) (7.26%) from the previous day’s close.
Hyundai Rotem initially saw a modest 5% gain early in the session, but following Trump’s speech, its stock surged by 12%.
Victek, a specialist in military communication equipment, also saw its stock hit the upper limit following Trump’s address and is currently maintaining a robust 25% increase.
Other defense sector stocks are also on the rise, with Hanwha Aerospace up 5.48% and Hanwha Systems gaining 1.16%.
Seo Jae-ho, an analyst at DB Securities, noted that low-cost drones have proven their combat effectiveness in Middle East conflicts. He predicts this will lead to increased demand for cost-effective K-defense air defense systems in the region.