Is the performance superior to that of Rheinmetall?
In a significant development, technical analysts predict that Renk's shares are on the verge of reaching their all-time high. Currently trading at 71.18 Euro, the company is just 9 Euro away from its record high of 80 Euro.
The positive mood in the market, which has been building for months, seems to be breaking through, with Renk's shares rising around 0.8% in the first hours of trading, surpassing the 71 Euro mark. This surge indicates a renewed confidence in the company's prospects.
Renk, a key supplier in the industry, is expected to indirectly benefit from the substantial investments and orders in billions from the German government in the defense sector. These discussions are currently taking place in the German parliament, with the federal government also discussing the draft budget for the current year. Once the budget is passed, it is likely to result in increased business for the defense industry, and by extension, for Renk.
The defense industry is about to enter a significant period, with these investments and orders expected to be approved in the coming days. This development has placed Renk's shares in the spotlight, with the stock expected to remain a focus in the coming days.
Interestingly, the parliamentary discussion to approve the federal budget, including for the defense industry, often involves the Federal President of Switzerland, currently Karin Keller-Sutter. She often participates in these discussions alongside the Finance Minister or other Federal Council members such as Alain Berset or Guy Parmelin, with Parmelin being noted for his role in negotiations related to defense and security sectors.
As the markets have already positioned themselves regarding Renk's shares, investors are closely watching the company's progress. With the defense industry investments on the horizon, Renk appears to be back in an uptrend in the market, making it an intriguing prospect for potential investors.
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