FRANKFURT (dpa-AFX) - The promise of further billion-euro arms deliveries to Ukraine boosted the shares of German arms companies on Monday. In the case of Rheinmetall, this was compounded by the establishment of a joint venture with Ukrainian state-owned Ukroboronprom and the order for further Marder infantry fighting vehicles by the German armed forces. The latter had already become clear earlier.

Rheinmetall shares rose by up to 2.2 percent, testing the consolidation trend they had embarked on after reaching a record high at the beginning of April. Most recently, they were one of the biggest Dax gainers, up 1.6 percent.

The same was true of defense electronics manufacturer Hensoldt, which is listed on the MDax, although its shares traded at a discount following the dividend payout. Nevertheless, they were up 2.1 percent in the late morning.

Defense stocks were among the biggest beneficiaries of the Russian attack on Ukraine in February 2022: Rheinmetall's share price has almost tripled since then, after even higher prices at times, and Hensoldt's has increased two and a half times./gl/mis