ST Engineering buoys Singapore stocks as war jitters rattle key Asian markets; STI up 0.5%

[SINGAPORE] Singapore’s benchmark Straits Times Index (STI) eked out a 0.5 per cent gain on Tuesday (Mar 3), rising 25.79 points to finish at 4,916.65, even as the war in Iran continued to sour investor sentiment.

This came as several key regional indices fell sharply. South Korea’s Kospi slumped 7.2 per cent, Japan’s Nikkei 225 slid 3.1 per cent, and Hong Kong’s Hang Seng Index fell 1.1 per cent. The FTSE Bursa Malaysia KLCI climbed 0.7 per cent.

Across the broader Singapore market, losers outnumbered gainers 349 to 279, after 2.3 billion securities worth S$3 billion changed hands.

The blue-chip index was lifted by defence contractor ST Engineering , which charged up 7.2 per cent or S$0.74 to close at S$10.99.

At the bottom of the STI table was Singapore’s largest real estate investment trust, CapitaLand Integrated Commercial Trust , which fell 1.2 per cent or S$0.03 to S$2.43.

The trio of local banks ended mixed. DBS slipped 0.1 per cent or S$0.03 to S$55.60, while OCBC gained 0.9 per cent or S$0.18 to S$21.11, and UOB climbed 0.1 per cent or S$0.04 to S$36.34.

SEE ALSO

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The iEdge Singapore Next 50 Index retreated 1.9 per cent to close at 1,481.79 points.

In a research report, Pictet Wealth Management said the war in Iran is “negative for equities in the very short term as markets adjust to the general increase in geopolitical uncertainty and a sharp rise in oil prices”.

While Pictet noted that the negative impact from such events is “usually short-lived”, it warned that should the conflict escalate into a regional war, “investors will need to adjust their positioning”.