Singapore Stock Market Reacts to Middle East Tensions

The Singapore stock market experienced a notable increase in activity during the week ending March 27, 2026, despite ongoing tensions in the Middle East, particularly related to the conflict involving Iran. The benchmark Straits Times Index (STI) rose, with significant contributions from various sectors. Singapore Airlines saw a 2.5% increase, closing at $6.66, while banking stocks such as DBS Group, United Overseas Bank, and OCBC Bank each gained over 2.5%. The Singapore Exchange (SGX) itself climbed 4.5%, closing at $19.67.

The Straits Times

Data released on March 25 indicated a surge in retail investor activity, with net purchases totaling $638 million by March 24. This trend reflects a contrarian approach, as retail investors focused on stocks that had declined in value. The 15 most purchased stocks, including DBS, OCBC Bank, and Yangzijiang Shipbuilding, averaged a 7.9% price decline in March, contrasting with a 3.2% gain for the most sold stocks.

The Straits Times

AEM Holdings, a semiconductor test solutions provider, has seen a remarkable rise, with shares increasing over 52% in March alone. The company reported better-than-expected results for 2025 and anticipates revenue between $460 million and $510 million for 2026, bolstered by a significant new customer in artificial intelligence and high-performance computing. JP Morgan has also taken a substantial stake in AEM, further boosting investor confidence.

The Straits Times

Singapore's REIT market remains robust, with CapitaLand Ascendas REIT announcing plans to acquire $1.4 billion worth of assets, including properties in Singapore and Japan. The REIT market has shown resilience, with Singapore REITs delivering over 20% returns in 2025, outperforming the global average of 15%. Low interest rates have contributed to this performance by reducing borrowing costs and enhancing asset values.

The Straits Times

On March 26, the LionGlobal Singapore Physical Gold exchange-traded fund (ETF) began trading on the SGX, providing investors with a new avenue for gold investment. The ETF tracks global gold prices and is backed by physical gold stored in Singapore. This launch coincides with Singapore's plans to enhance its position as a regional gold trading hub, which includes developing capital market products and establishing standards for vaulting and logistics.

The Straits Times

Looking ahead, key US economic data set to be released next week, including consumer spending and manufacturing reports, may influence market expectations regarding interest rates. The labor market remains a focal point for the US Federal Reserve, which is closely monitoring inflation risks associated with the Middle East conflict.

The Straits Times

While the market has shown resilience, some analysts express concerns about the sustainability of this growth amid geopolitical tensions. The volatility stemming from the Iran conflict could lead to unpredictable market conditions, prompting caution among investors.

The Straits Times

• “APREA chairman John Lim said Singapore stands out as a stable and well-established real estate market across office, logistics, retail and hospitality assets, and that tight supply and robust demand are supporting high occupancy rates and rising rents.” — John Lim, Chairman, Asia Pacific Real Assets Association

The Straits Times

• “This divergence shows that retail investors are taking a contrarian approach, buying stocks that have fallen rather than those that have risen, SGX said.” — Singapore Exchange Statement

The Straits Times

This overview encapsulates the current dynamics of the Singapore stock market as it navigates through external pressures and internal investment trends.

The Straits Times