Gun company shares soared on Monday as traders predicted that Americans will react to the Orlando massacre by rushing out to arm themselves with more guns.
Shares in the two biggest listed US gun manufacturers Smith & Wesson and Sturm Ruger & Co rose by 10% and 9%, respectively.
Gun companies shares have risen strongly after every recent mass shooting incident as investors speculate that the atrocities might lead to tougher gun control measures. Fear that stricter gun laws might be enacted cause more people to buy guns, especially semi-automatic assault rifles like the AR-15 used by Orlando killer.
Smith & Wesson, which sold a record $627m worth of guns and accessories last year, is expected to report even higher sales this year when it releases its full-year results on Thursday.
In its most recent quarterly earnings, in March, the company said sales were up 61.5%, which its British chief executive James Debney credited to the “long-term trend toward personal protection”. Sales in the quarter came in at $211m, and the company doubled its gross profit to $87m.
Smith & Wesson’s shares rose $2 to $23.40, and Sturm Ruger shares were up $5 to $62.50 when the market opened at 9.30am on Monday.
http://www.msn.com/en-us/news/breakingnews/us-gun-maker-shares-soar-after-pulse-nightclub-massacre/ar-AAgZaZN
