London, March 2, 2026, 08:31 GMT — Regular session.
- BAE Systems shares jump in early London trading, tracking a broader bid for defence names.
- A fresh buyback filing added company-specific colour at the open.
- Traders are watching Middle East headlines, oil prices and the next dividend dates.
BAE Systems (BAES.L) shares jumped 7.9% to 2,278 pence in early London trading on Monday, after opening at 2,239 pence and hovering near a 52-week high. The stock has ranged between 2,221 and 2,282 pence so far. 1
The move comes as markets reopen to a wider Middle East conflict that has pushed energy prices up and put pressure on risk assets. Brent crude was up 6.4% at $77.57 and gold gained 1.6%, Reuters reported, and a separate Reuters analysis flagged European weapons makers as potential beneficiaries if the fighting drags on. 2
British Prime Minister Keir Starmer said on Sunday the UK approved a U.S. request to use British bases for “specific and limited” defensive strikes against Iranian missiles, while stressing Britain was not involved in the initial U.S.-Israel attacks. Separately, the government on Monday awarded Italy’s Leonardo a 1 billion pound contract for 23 medium-lift helicopters, with Defence Secretary John Healey pointing to export potential. 3
BAE also put out a buyback update before the session. It bought 103,006 shares on Feb. 27 for cancellation, paying between 2,113 and 2,142 pence, at a volume-weighted average price (VWAP) of 2,126.09 pence — an average that weights each trade by size — a filing showed. 4
The stock ended Friday at 2,112 pence, down 0.28% on the day, after trading between 2,111 and 2,143 pence, according to exchange data compiled by Investing.com. 5
Oil remains the pressure point for the broader tape. “The key factor here is the closing of the Strait of Hormuz,” Ajay Parmar, director of energy and refining at ICIS, said, warning prices could open “much closer to $100” a barrel if disruptions persist. 6
BAE has already benefited from a wider re-rating in defence stocks since 2022. When it reported full-year results in February, chief executive Charles Woodburn said a “new era” of spending should drive growth, and the company forecast 7-9% higher sales and 9-11% higher operating profit in 2026. 7
But the trade can turn fast. Any sign of de-escalation would likely cool oil and could unwind part of Monday’s rush into defence, while a prolonged energy shock risks squeezing budgets and risk appetite at the same time.
A separate month-end update showed BAE had 3.16 billion shares in issue and 163.3 million held in treasury, leaving total voting rights of about 3.0 billion. 8
Next up, investors will track Middle East developments and the company’s dividend calendar. BAE’s shares are set to go ex-dividend — the first day the shares trade without the next payout attached — on April 23, with a record date of April 24 and payment due June 4; it also flagged July 30 for its half-year results. 9
