Singapore stocks fall as Iran war cripples Asian markets; STI down 2.1%

[SINGAPORE] Singapore stocks fell on Wednesday (Mar 4) as the ongoing conflict in the Middle East rattled global markets and sent oil prices sharply higher.

The benchmark Straits Times Index (STI) fell 2.1 per cent or 103.9 points to close at 4,812.75.

This was in line with a sharp sell-off across key Asian markets. South Korea’s Kospi sank 12.1 per cent – the biggest drop in its 46-year history – while Japan’s Nikkei 225 slid 3.6 per cent, Hong Kong’s Hang Seng Index fell 2 per cent, and the FTSE Bursa Malaysia KLCI lost 0.8 per cent.

Across the broader Singapore market, losers outnumbered gainers 564 to 172, after 2.4 billion securities worth S$3.6 billion changed hands.

“Asia’s sell-off is turning disorderly because markets are no longer treating this as a ‘one-week headline shock’,” said Saxo’s chief investment strategist Charu Chanana, adding that the pricing now “reflects a conflict that could drag on, with spillover risk rising rather than fading”.

“The ‘sell what you can’ phase is spreading: Liquidity needs are pulling down even precious metals, which looks less like a clean rotation and more like de-leveraging and margin-driven selling across asset classes.”

DFI Retail Group was the sole gainer among Singapore’s blue-chip index constituents. The counter rose 3.9 per cent or US$0.16 to US$4.30.

The worst STI performer was Keppel , which fell 5.9 per cent or S$0.75 to S$12.00.

The trio of local banks all finished lower. DBS slipped 1.1 per cent or S$0.60 to S$55.00, OCBC shed 1 per cent or S$0.21 to S$20.90, and UOB fell 1.4 per cent or S$0.51 to S$35.83.

Meanwhile, the iEdge Singapore Next 50 Index retreated 0.5 per cent or 7.34 points to close at 1,474.45.