Federal Finance Minister Christian Lindner's Statements Regarding Future, Billion-Euro Wiggle Room for Defense Budget Increase Drive Share Prices of German Defense Companies on Tuesday. Rheinmetall, HENSOLDT and RENK Continued Their Record Run on the Stock Market. Rheinmetall Reached a Trading High of 535.60 Euros and Most Recently Recorded a 1.6 Percent Increase to 529.20 Euros. Thereby, the Company Solidifies Its Position as Leader in the DAX with a Gain of About 85 Percent Since the Beginning of the Year, After Already Achieving a Price Increase of Over 50 Percent in the Previous Year.
HENSOLDT reached a new all-time high in the MDAX at 44.58 euros before slight profit-taking caused the price to minimally drop to 43.40 euros. Nevertheless, this represents an increase of 76.5 percent in the current year. RENK, a newcomer to the stock market, also recorded an increase of 4.8 percent to 38.61 euros, after a new high was reached during the day's trading.
These developments follow the announcements by Lindner, who sees a financial leeway of up to nine billion euros for increasing the defense budget in the federal budget starting from the year 2028. Lindner also emphasized that the NATO target of an increase in defense spending will be achieved in the coming years.
The Reasons for Significant Gains in the Defense Sector are Due to Increasing Geopolitical Tensions Worldwide, Particularly Triggered by the Russian Offensive War Against Ukraine in February 2022. This Has Initiated a Turning Point in European Defense and Security Policy. Against the Backdrop of the Threat Posed by Russia and Warnings of Potential Further Attacks on European States, Defense Minister Boris Pistorius Aims to Make the Bundeswehr "Combat-Ready".
