DroneShield leads broader defence tech losses
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The news: DroneShield shares were among the biggest losers on the ASX 200 amid a broader decline in defence technology stocks.
The numbers: At 3:02pm AEDT, shares in DroneShield were down 8.7% to $3.80, although they are still up 406.7% since the start of the year.
Rival counter drone manufacturer Electro Optic Systems saw its share price fall 9.2% to $5.78 while shares in ASX-listed Israeli drone communications system producer Elsight had fallen 12% to $1.42.
Other defence stocks like Austal (-4.6%) and IperionX (-5.3%) were also among the biggest losers on the ASX 200.
The context: Bell Potter analyst Baxter Kirk told Capital Brief that there is likely a broader “risk off trade for defence in general” tracking a decline in defence stocks in overseas markets. For example, the S&P Aerospace & Defence Select Industry Index has fallen 3.2% over the last five days.
“I think this is largely profit taking and…rotation trades going in and out of thematics,” Kirk said.
