Proactive Investors - Rolls-Royce Holdings PLC (LSE:LON:RR.) shares surged to a record high on Wednesday as Donald Trump’s election win over Kamala Harris sent defence stocks higher.
Shares were up 4.2% at 583.60p in the wake of the news, having climbed to an all-time high of 590.6p earlier on in the morning.
BAE Systems (LON:BAES) PLC (LSE:BA.) also jumped by 4.7% to 1,340.50p on Wednesday, with the duo sitting among the most exposed London-listed companies to the US.
This came as fears over sweeping import tariffs under Trump appeared to be offset by the former president’s likely commitment to hiking defence spending.
Charles Stanley (LSE:CHAS)'s Garry White noted Trump was set to "boost military spending," highlighting plans for "the installation of an iron dome-style defence for the whole country".
Futher tax cuts and deregulation are also expected under a second Trump presidency, Henderson International Income (LON:HINT) Trust portfolio manager Ben Lofthouse pointed out.
Ashtead Group PLC (LSE:LON:AHT), Barclays PLC (NYSE:BCS) (LSE:BARC) and Intercontinental Hotels Group PLC (LSE:NYSE:IHG (LON:IHG)) also emerged as winners among London's blue chips as a result of their exposure to the US.
Scope Markets analyst Joshua Mahony noted Trump’s likely win had brought a “goldilocks scenario” for banks as tariffs were unlikely to stretch to the sector, while interest rates remained high.
Ashtead, "as a hirer of construction equipment," was set to be "a direct play on hammers and tools pounding away across the country" as Trump turned to boosting construction, AJ Bell (LON:AJBA) analyst Russ Mould added.