British defence companies recorded strong gains as investors piled into the sector on renewed hopes that the UK government will increase its defence budget to meet the threat of Russia.
Shares in Babcock International, the aerospace and defence engineer, rebounded from a seven-week low to rise 18¾p, or 6.2 per cent, to 320p amid reports ministers are calling for increased military spending.
QinetiQ, the defence research company whose minefield technology was used in Afghanistan, rose by 6p, or 1.7 per cent, to 363½p while BAE Systems, which builds combat aircraft as well as warships and submarines, lifted 28p, or 3.5 per cent, to 826½p. Rolls-Royce, the jet engine maker, led the charge on the FTSE 100, up 5¼p, or 6.5 per cent,
