Defense stocks including Hyundai Rotem are showing strong performance. It is interpreted that supply and demand have concentrated on the analysis that they may fall within the tariff policy safe zone of U.S. President Donald Trump.
As of 9:55 a.m. on the 4th, Hyundai Rotem's stock price rose 6.33% from the previous day to 60,500 won. LIG Nex1 also increased by 8.33% to 247,000 won compared to the previous day. Defense-related companies' stock prices are showing strength.
It seems to have attracted investors' attention based on the judgment that they may fall within the safe zone in the second term tariff policy of the Trump administration. President Trump decided to postpone the imposition of high tariffs on Canada and Mexico for one month, but uncertainty still remains.
Jang Nam-hyun, a researcher at Korea Investment & Securities, explained, "There is no proportion of U.S.-bound weapon system exports in the performance of defense companies," adding, "Future exports will mainly occur in the Middle East, Eastern Europe, and Southeast Asia."
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