BAE Systems PLC (LSE:BA.) and other UK and European defence shares surged higher again on Monday after the Ukraine defence summit hosted by Kier Starmer over the weekend.
The Prime Minister confirmed that the UK and France will lead a "coalition of the willing" to support Ukraine and help end the war with Russia.
He also announced a deal that would allow Ukraine to use £1.6 billion of export finance to buy more than 5,000 air defence missiles, to be made by French defence and aerospace giant Thales Group in Belfast.
Already boosted last week by Starmer's pledge to increase defence spending, BAE shares jumped 18% to a new all-time high of 1,650p, with other defence and aerospace stocks also on the up.
Reinforcements for the gains also were supplied by JPMorgan in a note this morning entitled "Europe’s rearmament cycle...now it’s for real", saying that its previous thesis of a 10-year process for the sector has been "turbo-charged" by the events of the last two weeks.
On the FTSE 100, Rolls-Royce Holdings PLC (LSE:RR.) rose 5%, continuing its results momentum from last week, and Melrose Industries PLC (LSE:MRO, OTC:MLSPF) added 1.1%.
Among the mid-caps, defence technology group QinetiQ Group PLC (LSE:QQ.) jumped 9.5%, Babcock International PLC (LSE:BAB) 7.6% and Chemring Group (LSE:CHG) 6%.
Helmet and gas mask maker Avon Technologies PLC (LSE:AVON) added 6.5%, while sonar, torpedo and communications specialist Cohort PLC (AIM:CHRT) rose 12% among the small caps.