[Market Focus] Possibility of Russia-Ukraine Ceasefire... Defense Stocks Weaken

As expectations for an end to the Russia-Ukraine war spread, the stock prices of defense-related companies are showing weakness.

As of 9:48 a.m. on November 24, Hyundai Rotem was trading at 171,400 won, down 11,400 won (6.24%) from the previous trading day. At the same time, Hanwha Systems (-4.84%), LIG Nex1 (-4.73%), and Korea Aerospace Industries (-4.03%) were also all on a downward trend.

On November 23 (local time), the United States, Ukraine, and European countries such as France, Germany, and the United Kingdom held talks in Geneva, Switzerland, and began detailed discussions on the U.S. peace proposal. The United States recently delivered a ceasefire plan, which it had discussed with Russia, to Ukraine and is urging both sides to accept it by Thanksgiving Day, which falls on November 27.

U.S. Secretary of State Marco Rubio said after the talks, "This may have been the most productive and meaningful meeting in the entire process we have participated in." He added, "There is still work to be done, but there has definitely been progress compared to a week ago," expressing hope that an agreement will be reached soon.

Ukrainian President Volodymyr Zelensky also posted a video statement on Telegram, saying, "A lot is changing," and "We are working very carefully on the necessary steps to end the war."

However, some analysts say that it will be difficult for Ukraine to actively accept the current U.S. peace proposal. This is because the plan reportedly includes Ukraine giving up territory, being barred from joining the North Atlantic Treaty Organization (NATO), and drastically reducing its military, which is seen as being close to a 'surrender plan' for Ukraine.