Defense stocks retreat across the board; LIG D&A down in the 9% range, Hanwha Aerospace in the 5% range [Stocks NOW]

[Financial News] Major domestic defense stocks are falling across the board. Concerns about earnings in the defense sector and new orders persist, while uncertainty over LIG Defense & Aerospace's (LIG D&A) eligibility to bid on public contracts also appears to be weighing on investor sentiment.
As of 10:48 a.m. on the 26th, LIG D&A was trading at 430,000 won, down 45,500 won (9.57%) from the previous trading day. The stock opened at 458,500 won and fell as low as 423,000 won intraday.
Hyundai Rotem was trading at 78,700 won, down 4,000 won (4.84%) from the previous trading day. It fell as low as 78,100 won intraday, setting a new 52-week low. Hanwha Systems was trading at 62,000 won, down 4,300 won (6.49%) from the previous trading day. The stock opened at 66,000 won and fell as low as 60,100 won intraday. Hanwha Aerospace was also trading at 746,000 won, down 46,000 won (5.81%) from the previous trading day. The stock opened at 799,000 won and fell as low as 741,000 won intraday.
Defense stocks underwent a sharp correction after Hyundai Rotem's third-quarter results on the 20th fell short of market expectations, heightening concerns about earnings expectations and delays in new orders. At the time, major defense stocks, including Hyundai Rotem, Hanwha Aerospace, Hanwha Systems and LIG D&A, all plunged.
LIG D&A also faced company-specific headwinds. The Defense Acquisition Program Administration barred the company from bidding on contracts from the central government, local governments and public institutions for two years starting on the 29th, in connection with allegations that money and valuables were offered during a weapons-development bidding process. The company plans to take legal action, including seeking a stay of execution and filing a lawsuit to revoke the administrative measure.

[email protected] Lee Jeong-hwa Reporter