LIG Nex1 Co. Share Price Surges 17.8% on Korea Exchange

Key Highlights

• LIG Nex1 Co.'s share price surged 17.8% to 899,000 KRW on the Korea Exchange on March 6, extending its sharp rally.
• The defence stock has rallied 78.7% in five trading sessions, taking the company's market capitalisation near 18 trillion KRW.
• The rally comes amid reports that LIG Nex1's air defence systems were used to intercept Iranian missiles launched at the United Arab Emirates.

Market Reaction

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The surge in LIG Nex1's share price is attributed to reports that its air defence systems were used to intercept Iranian missiles launched at the United Arab Emirates. Local media reports suggest that Gulf nations may expand orders for LIG Nex1's missile interceptors to counter potential Iranian strikes.

Recent Developments

• The United Arab Emirates has reportedly asked LIG Nex1 to supply additional interceptors.
• Three Gulf countries have requested early delivery of planned shipments, while Qatar has offered to place a new order for the missile defence systems.
• LIG Nex1 has exported its mid-range surface-to-air missile systems (M-SAM II), also known as Cheongung II, to the UAE, Saudi Arabia, and Iraq between 2022 and 2024 in deals valued at over 12 trillion won ($8.2 billion).

Technical Outlook

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According to Anshul Jain, Head of Research at Lakshmishree Investments, LIG Nex1's share price has confirmed a decisive breakout from a 47-week bullish flag pattern near the KRW 550,000 level, signalling a continuation of the prevailing uptrend.

Stock Performance

• Hanwha Systems Co. surged 30% on Thursday.
• Korea Aerospace Industries Ltd. and Hyundai Rotem Co. gained more than 9% each.
• Hanwha Aerospace Co., a partner in the production of the M-SAM missile systems and other defence platforms, hit a record high this week.
• The stock has delivered a staggering 3,000% rally over the past five years, making it one of the world's best-performing defence stocks.