KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Defense stocks surged Friday as markets reacted swiftly to Israel’s military air strikes on Iranian nuclear and missile sites — a move that has significantly raised the risk of a wider war in the Middle East.
The sudden escalation sent investors rushing into defense and aerospace names, betting on heightened demand for weapons systems, surveillance tech, and military support.
Missile Strikes, Market Moves
With Israeli Prime Minister Netanyahu warning of more attacks to come and U.S. President Trump pushing Iran to agree to a new nuclear deal, the defense sector lit up green across the board.
Topping the leaderboard were U.S. defense giants:
Lockheed Martin (LMT) +3.6%
Northrop Grumman (NOC) +3.5%
RTX Corp. (RTX) +3.2%
All three have deep supply ties to Israel via U.S. military contracts and were among the top 15 gainers in the S&P 500 on Friday.
Broader Rally in the Sector
Momentum wasn’t limited to the big three. Other beneficiaries of the rising geopolitical tension included:
Palantir Technologies (PLTR) +2.8%
Kratos Defense (KTOS) +2.4%
AeroVironment (AVAV) +2.3%
L3Harris (LHX) +2.1%
General Dynamics (GD) +1.6%
Axon Enterprises (AXON) +1.2%
TransDigm (TDG) +1.2%
Heico (HEI) +0.8%
Howmet Aerospace (HWM) +0.5%
Textron (TXT) +0.5%
The iShares U.S. Aerospace & Defense ETF (ITA) and SPDR S&P Aerospace & Defense ETF (XAR) also saw notable inflows as investors repositioned for defense outperformance.
Not Everyone Gained Altitude
Two notable exceptions:
Boeing (BA) -1.5%
GE Aerospace (GE) -1.1%
Both stocks were dragged down by negative sentiment following Thursday’s Air India crash, underscoring how civilian aerospace names remain vulnerable to separate risk factors.
Why It Matters
Markets often look ahead. A spike in defense spending — especially in response to geopolitical shocks — typically benefits contractors, weapons systems makers, and data analytics firms like Palantir. As tensions build, so too does the potential for higher global military budgets.
But investors should tread carefully. Short-term geopolitical rallies can fade fast if diplomacy intervenes or if risk appetite shifts.
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