Significant Increase in Defense Stocks: Investments are Rising

Rise in the Defense and Aviation Sector

Last week, increasing investments in the defense and aviation sector, along with geopolitical tensions and technological advancements, led to a rise in company stocks. Conflicts in various regions around the world significantly impact the performance of defense industry stocks. Notably, the Russia-Ukraine War and the Japan-China tensions in Asia are among the factors supporting the rise of these stocks.

US Military Spending is Increasing

The US has decided to increase defense investments alongside its military stance toward Venezuela. In this context, the Donald Trump administration's decision to set the military budget at $1.5 trillion for 2025 has created positive effects in global defense stocks. The increasing security needs in traps have forced many countries to expand their defense budgets.

Stock Value Increases

In light of recent developments, significant rises have been observed in the stocks of defense and aviation companies. South Korean Hanwha Aerospace stocks rose by 28.3%, German Rheinmetall by 18.6%, Swedish Saab by 21.8%, British Rolls-Royce by 8.1%, Italian Leonardo by 14.2%, US-based L3Harris Technologies by 10.3%, and Lockheed Martin by 9.2%. Turkey’s defense giant ASELSAN also showed a weekly increase of 21.6%.

ASELSAN and High Technology

ASELSAN, with a market value exceeding 1 trillion lira, has strengthened its position as the most valuable defense company on the Borsa Istanbul. Notable for its technological production capabilities, ASELSAN stands out by developing high value-added products such as MURAD AESA Array Radars. By 2025, its market value reached 1 trillion 276.8 billion lira. Thus, the domestic defense industry accelerated its nationalization process with 103 new products.