Orlando shooting sends gun stocks Smith & Wesson, Ruger higher

Shares in companies that make guns were higher Monday, the first trading day after the shooting in Orlando that is the deadliest in American history.

Gun maker Smith & Wesson was up more than eight per cent to above $23 a share and rivalSturm, Ruger & Co. was up by more than 10 per cent on Monday, two days afterOmarMateenkilled 49 people in an Orlando gay dance club using assault weaponry.

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Gun companies often see their shares rise in the aftermath of deadly shootings, as such events typically prompt a wave of gun-buying by those who think the government will attempt to crack down on private gun ownership as a result.

Gun sales jumped in January after President Obama vowed to use executive powers to expand background checks for buyers and bolster licensing requirements for dealers.

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Thatannouncement had followed the mass shooting in San Bernardino, California, where a couple pledging allegiance to Islamic State killed 14 people.

Smith & Wesson saw its sales increase by 61 per cent in the quarter that followed that shooting. But short sellers people who make money by betting against a stock have increased their bets against Smith & Wesson by more than a third since February, Bloombergdata shows.

Gun sales slowed in May according to adjusted data from National Instant Criminal Background Check System (NICS), which processesapplications to own firearms.

Smith & Wesson is scheduled to release its quarterly earnings after markets close on Thursday. The company sold almost $630 million US worth of weaponry last year, its highest total ever.