Gun manufacturer shares rise following Las Vegas shooting

Gun manufacturer shares rise following Las Vegas shooting

Gun sales are expected to rise

Tuesday, October 3, 2017

Gun manufacturer shares and stock prices have risen following the shooting in Las Vegas.

The deadliest mass shooting in US history left 59 people dead and more than 500 people injured. But, rather than denting the reputation of manufacturers, shares in two firearm-makers - American Outdoor Brands and Sturm Ruger - have risen by almost 4%, according to RT.

Experts claim the rise is common after mass shootings because demand is expected to increase as people fear that gun laws may become tighter.

Many are also expected to invest in gun ownership as a form of protection after seeing the destruction witnessed in Las Vegas.

American Outdoor Brands announced in its annual report that product demand is related to "speculation surrounding increased gun control at the federal, state, and local level and heightened fears of terrorism and crime."

For example many manufacturers said gun sales dropped after Donald Trump became President, as sales had previously risen when people expected that a Democrat would win the election and could make gun laws tighter.

Rommel Dionisio, the managing director of financial services company Aegis Capital, told CNBC that after shootings in Orlando "you saw a two-to-a-three-month surge in firearms sales."