BAE Systems (BA.UK) shares are up nearly 4.2% today on the back of positive news from the defense industry and increased interest in drones. The company announced an acceleration in the production of warships, declaring its ability to build one unit per year over the next two years (six months faster than currently). At the same time, the company issued a statement regarding an ambitious plan to modernize its production facilities and sign new contracts with the British and Norwegian governments.
Added to this is significant unrest in Poland following recent drone incidents, which forced NATO to respond and sparked new debates on border security. The latest reports of closer industrial cooperation with Ukraine are also an important factor supporting the share price. This mainly concerns joint projects in the production and transfer of technology for the latest combat drones. The new agreement provides for the production of thousands of units per month and the transfer of technology to Ukrainian plants, which strengthens the position of both BAE and the British defense sector. The market has reacted positively to this news, seeing it as an opportunity for both an increase in orders and the expansion of the portfolio of innovative products, especially in the field of unmanned defense systems.
BAE Systems shares are today's leaders in terms of growth in the arms sector. Source: xStation
The stocks themselves are continuing the dynamic growth seen over the last two days, reaching their highest levels since July this year. What is more, the RSI indicator for the last 14 sessions is rising to around 70 points. Source: xStation
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