Ukraine invasion leads to spike in BAE Systems share price
Russia’s invasion of Ukraine has triggered a spike in BAE Systems share price this morning as investors eye defence stocks.
Britain’s biggest defence company saw its share price surge by 14% to 744.8p this morning after closing on Friday, February 25, at 653p.
This is a record for the FTSE 100 listed company which has seen shares go up by 25% over the past week as analysts say the Ukraine invasion has changed the outlook for European defence stocks.
The manufacturer of combat ships, submarines and fighter jets employs 13,000 people in its UK Air sector, with significant numbers at Warton and Samlesbury in Lancashire.
Russ Mould, investment director at AJ Bell said: “BAE Systems soared by 14% as investors flocked to the defence sector most likely in the belief that governments around the world would take another look at their defence budgets and increase spending.
“Fellow defence companies were also in demand, Chemring jumped 10% and Qinetiq was up nearly 9%, while French electrical systems group Thales advanced 13% given its position as a supplier to the defence sector.”
Last week BAE Systems revealed its 2021 financial results with profits growing by 32% to £2.1bn, with improvements in all six of its divisions.
Its most profitable division, Air, contributed £930m to operating profits.
