JF-17 and J-10C Maker’s stocks surge, Rafale’s Dassault Aviation’s slump

In an unexpected twist of events, the aftermath of Pakistan’s successful military operations has led to significant changes in stock market performance, particularly for key players in the aerospace industry.

Shares of Chengdu Aircraft Corporation (CAC), the Chinese aerospace company responsible for the production of JF-17 and J-10C fighter jets, saw an impressive rise following reports of Pakistan shooting down multiple Indian Rafale jets.

The CAC’s stock surged by 11.85 points on the Shenzhen Stock Exchange (SZSE) after the news broke, reflecting investor confidence and heightened demand for its aircraft.

At 9:45 AM Pakistani time, CAC’s shares were priced at CNY 71.08, marking an increase of 18 percent. By 11:45 AM PKT, the stock continued to show positive growth, trading at CNY 69.42—a gain of 17.17 percent. As of 11:51 AM PKT, the shares stood at CNY 68.88, up by 16.29 percent, reinforcing the positive market sentiment toward the Chinese defense manufacturer.

Dassault Aviation’s Stock Decline

Conversely, shares of Dassault Aviation, the French manufacturer of the Rafale fighter jets, experienced a sharp decline in response to the reported downing of several of its aircraft. At the time of the market reaction, Dassault Aviation’s shares fell by over 5 percent on the Paris Stock Exchange (AM.PA).

At 11:53 AM PKT, Dassault’s shares were down by EUR 5.40, or 1.64 percent, trading at EUR 324. This drop followed reports of the Pakistan Air Force (PAF) intercepting and destroying up to six Rafale jets in a high-stakes military operation, which significantly impacted investor confidence in the French company.

The Geopolitical Impact on Defense Stocks

The dramatic shift in defense stocks highlights the financial volatility and sensitivity of the aerospace industry to geopolitical tensions. As news of Pakistan’s retaliation spreads, market reactions continue to shape the outlook for key aerospace manufacturers like CAC and Dassault Aviation, both of which are integral players in the international defense market.

The fluctuations in the stock prices of CAC and Dassault Aviation underscore how military actions can swiftly impact the financial performance of companies involved in the defense sector. While CAC is experiencing a notable surge in stock value, Dassault Aviation is grappling with the fallout from the destruction of its high-profile Rafale jets.