Lockheed Martin stock drops 4.5% on Tuesday

WION Web Team New Delhi Feb 26, 2020, 12.30 PM(IST)

A Lockheed Martin F-35 aircraft is seen at the ILA Air Show in Berlin, Germany, April 25, 2018. Photograph:( Reuters )

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Canada has been negotiating with a number of defence companies -- Lockheed, Boeing and, Airbus among them. 

Shares of Lockheed Martin dropped 4.5% in Tuesday trading. A part of the drop is tied to general malaise in the markets, while another reason is said to be Canada's decision to postpone its purchase decision to replace its obsolete fleet of Boeing CF-18 fighter jets.

Canada has been negotiating with a number of defence companies -- Lockheed, Boeing and, Airbus among them -- to buy a new kind of plane to replace its obsolete fleet of Boeing CF-18 fighter jets.However, it appears that both companies are in something of a losing position, as Reuters reports that Canada may delay its already long-delayed decision by another three months. 

Supposedly, Canada finally was going to accept preliminary proposals from the bidders (which by now have grown to include Saab, but shrunk to exclude Airbus) by the end of March. But according to Reuters, Prime Minister Justin Trudeau has now postponed the bidding by a further three months "to give bidders more time to address security questions." 

Lockheed shareholders didn't seem to like the news, and the stock is down today -- partly because of the coronavirus.