The anniversary of the invasion of Ukraine on the stock exchange
February is generally the month of Carnival. Children and joy. Masks and confetti. For a couple of years, unfortunately it has become the month of witches. On the 24th of 2022 Russia invaded Ukraine and on the 21st of 2020 the first case of Covid 19 was recorded in Italy. There is less and less talk of a pandemic. War, unfortunately, is a very topical topic. Especially on the occasion of the first anniversary.
Oil better than weapons
Like every anniversary, that of the war also becomes an opportunity for balance sheets: who has won on the financial markets? Contrary to popular belief, the winners are not the arms manufacturers but the oil stocks. The only exception is the German Rheinmetall from whose assembly lines come the Leopard tanks considered essential for Kiev to win. Stocks gained 152% in one year. Leonardo also did very well, up 56%. Far behind Americans and British.
European stocks better than US ones
A dynamic that is not surprising. Europe must build its own defense system. The US and Great Britain already own it. Raytheon Technologies, considered the Pentagon’s arsenal, gained just under 9%. He did a little better there Lockeed Martin with an increase of 23% It produces the F35, the most modern fighter in the world and the Black Hawk, the absolute star of all the wars (and related films) fought by the USA since the 1970s. General Dynamics which builds the F16, the most popular fighter in the world, rises by 8%. The conflict in Ukraine seems to demonstrate that the traditional air weapon needs to be rethought given the efficiency of missile defense. Better to embark on the innovation of drones as demonstrated by the success of Northorp Grumann a Wall Street (+23%).
Black gold is the most sought after
The discourse on oil is different. With the exception of Eni, which remained flat in the twelve months, the other oil companies have soared: Exxon +44%, Total +24%, Shell +. 27%. In Piazza Affari it stands out with +48%.
Mice versus shotguns: the weapons of the future
But the real novelty is the irruption of a new type of conflict. To fight it are no longer the soldiers but the hackers. No rifles but mice as demonstrated the new cyber attack launched by a Russian collective against the sites of important Italian institutions and companies. For the perpetrators of the gesture, it is a matter of revenge against what they define as “Russian-phobic Italy”. In fact, the attack occurred immediately after the visit of the Head of Government, Giorgia Melonia Kiev.
Cybersecurity is a leading topic in this period, above all because it is intertwined with geopolitical factors, which inevitably influence the performance of tech stocks on the Stock Exchange. In recent times, however, these stocks have also been conditioned by other factors, of a more purely economic-financial nature.
The challenge of cyber security
However, since the outbreak of the pandemic, stocks related to IT Security have been the subject of growing interest, as remote working makes systems more vulnerable. This is why some major companies in the sector have seen their balance sheets grow.
Wall Street Stars
The last to communicate the data was Palo Altowhich ended the Wall Street session yesterday with an increase of +13% (+35% since the beginning of 2023). Net profit jumped to 84.2 million, against a loss of -93.5 million in the same period of the previous year. Last week it was the turn of Cisco Systems, another Tech giant involved in the IT security sector, which closed the quarter with revenues of 13.59 billion, +7% on an annual basis, against the 13.43 billion expected by analysts. Cisco has raised its 2023 guidance, which exceeds the consensus.
And those in Piazza Affari
The news has also arrived in Italy, putting the turbo on the few listed companies that deal with digital security. Leonardo, also present in this field is the only giant. Then there are Cyberoo, Cy4gate, Vantea.