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Cyber security shares rally after worldwide ‘ransomware’ onslaught

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A hooded man holds a laptop computer as a blue screen with an exclamation mark is projected on him in this illustration picture taken on May 13, 2017. Capitalising on spying tools believed to have been developed by the US National Security Agency, hackers staged a cyber assault with a self-spreading malware that has infected tens of thousands of computers in nearly 100 countries. Photo: Reuters

A global “ransomware” attack disrupting factories, hospitals, shops and schools spurred investors on Monday to buy stocks expected to benefit from a pickup in cyber security spending by companies and government agencies.

The cyber attack began spreading across the globe on Friday and by Monday had locked up computers in more than 150 countries. European Union police agency Europol said on Monday the attack had hit 200,000 machines.

“These attacks help focus the minds of chief technology officers across corporations to make sure security protocols are up to date, and you often see bookings growth at cyber security companies as a result,” said Neil Campling, head of technology research at Northern Trust.

A computer keyboard sits on a world map in this photo taken in Taipei, Taiwan. Stock of cyber security firms jumped after a global ‘ransomware’ attack hit computers in dozens of countries. Photo: EPA
A computer keyboard sits on a world map in this photo taken in Taipei, Taiwan. Stock of cyber security firms jumped after a global ‘ransomware’ attack hit computers in dozens of countries. Photo: EPA

Investors treated the attack as a buying opportunity for security stocks rather than a cause for concern over the risk it posed to companies, with the pan-European STOXX 600 index little changed and major US indices up in midday trading.

In London, shares in cloud network security firm Sophos jumped more than 7 per cent to a record high and security firm NCC Group rose 2.7 per cent.

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