[Market Focus] Trump Hints at Supporting Ukraine Attacks... Defense Stocks Surge

On August 22, defense industry stocks are showing strong performance. This comes as U.S. President Donald Trump hinted at supporting Ukraine's attacks against Russia.

As of 9:37 a.m. on this day, Hanwha Aerospace is trading at 875,000 won, up 41,000 won (4.92%) from the previous trading day.

Other related stocks are also rising, including LIG Nex1 (5.75%), Hyundai Rotem (4.60%), Hanwha Systems (3.72%), Samyang Comtech (19.13%), and Sensor View (9.09%).

On August 21 (local time), President Trump wrote on his social media platform Truth Social, "It is not impossible, but it is very difficult to win a war without attacking the aggressor."

He added, "In sports terms, it is like having a fantastic defense but not being allowed to attack-a great team, but with no chance of winning. The same applies to Ukraine and Russia."

The term "aggressor" appears to refer to Russia, and Trump seems to have indirectly argued that Ukraine cannot win the war without counterattacking.

With the outlook that negotiations for a Russia-Ukraine ceasefire will be delayed, investor interest in defense industry stocks appears to be increasing.

Additionally, expectations from the securities industry that global demand for weapons will continue to rise have also boosted investor sentiment.

Lee Jaekwang, a researcher at NH Investment & Securities, analyzed in a report titled "Peace Has Not Yet Come Close" on this day, "Even if a ceasefire is reached, the trend of increasing global demand for weapons will continue."

He further recommended, "A decline in defense stocks should be seen as an opportunity for bargain hunting," and diagnosed, "Ceasefire negotiations themselves are not easy, and even if they do occur, it is highly likely that many of Russia's demands will be reflected in the agreement."

He assessed that even if a ceasefire is achieved, it is likely to be one that does not resolve the fundamental security threat of Russia's territorial expansion. Therefore, it is unlikely that Europe's demand for weapons will decrease.