Sustainable investors hold their ground as energy, defence stocks surge
Can investors allocate capital to energy and defence stocks responsibly? Yes, and there are even opportunities for alpha generation, sustainability experts say
[SINGAPORE] Regional wars, tariff threats and the US’ pro-fossil fuel policies have sent defence and energy stocks soaring in 2025, but not all is lost for investors committed to sustainable and responsible investing, experts told The Business Times.
Markets were closed on Sunday (Jun 22), when US President Donald Trump ordered an attack on Iranian nuclear sites, but investors are bracing themselves for a further spike in oil prices and rush to safe havens.
The S&P 500 Energy sector index had risen 8.56 per cent month on month as at Jun 20, compared with the S&P 500’s 2.11 per cent month-on-month gain. In Asia, several energy stocks rose after Israel launched air strikes on Iran on Jun 13, sending Brent futures up by US$5 to US$74 per barrel.
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