Stocks decline with rising Middle East tensions: Weekly Market Recap

In my recent podcast interview with Arthur Lang, the Group CFO of Singtel, we spoke about something that really resonated with me — risk.

Arthur shared that throughout his leadership journey across banking, property, and now telecommunications, many of his mentors took a risk on him. And that’s something I deeply relate to.

For me, investing is also about understanding the kind of risks you're willing and able to take. There’s no one-size-fits-all strategy. The “best” portfolio is the one that’s aligned with you.

That's why in today's update, I've been exploring different options.

If you prefer safer options, we break down the best places to park your cash right now. With the 6-month Singapore T-bill yield expected to stay close to 2.0%, we compare savings accounts, fixed deposits, T-bills, and SSBs so you can find the highest yield for your savings.

And for those of you investing in the local market, we take a closer look at Keppel DC REIT, which is set to join the benchmark Straits Times Index (STI) this month. Also, do join us for our upcoming in-person seminar at 7pm on 25 June 2025 as we discover where the opportunities lie with Singapore stocks nearing all-time highs. Register for free here. 

If you're looking to grow your wealth over time, we show how you can dollar-cost average (DCA) into US stocks with low fees.

During the podcast, Arthur and I agreed that sometimes, not taking risk can be a risk in itself. It might cost us our financial freedom, or our ability to retire the way we want.

The key is to take calculated risks — manage what you can, and be prepared for what you can’t.

Listen to the podcast here and let me know if it’s helped you think differently about your own relationship with risk.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

🏛 Tensions rise in the Middle East

What happened? 

Israel launched a wave of airstrikes on Friday targeting Iran’s nuclear facilities and senior military officials, with officials warning of further action ahead. 

In response, Iran carried out a retaliatory strike later the same day, heightening concerns of a broader geopolitical escalation. 

What does this mean?

Oil prices moved higher following renewed tensions in the Middle East, as investors weighed the risk of broader disruptions to regional oil supply. 

The escalation overshadowed earlier optimism from reports that the U.S. and China had reached a preliminary agreement to ease trade tensions.

Why should I care?

The S&P 500 ended the week lower as rising tensions in the Middle East weighed on investor sentiment.

Singapore equities also declined, with transport-related stocks like SATS and Singapore Airlines under pressure due to concerns over higher crude oil prices.

Adding to the drag on SIA’s share price was an incident involving an Air India aircraft. SIA holds a 25.1% stake in the Indian national carrier.

🚗  Moving This Week

• SingPost, by way of unwinding crossholdings with Alibaba Group Holdings, has completed the disposal of its interest in Shenzhen 4PX Information and Technology, held by Quantium Solutions International (QSI), now a subsidiary of SingPost. SingPost anticipates receiving a cash inflow of about $55.86 million from the transaction.
• Keppel Infrastructure Trust (KIT) is divesting a 24.6 per cent stake in an Australian bus service business, Ventura Motors, for A$130 million (S$109 million). This is a 19 per cent premium from KIT’s acquisition price for the relevant stake. It had in June 2024 acquired a 97.7% stake in Ventura for an enterprise value of A$600 million. Read more here.
• Elite UK REIT announced the acquisition of three freehold and long-leasehold properties in England and Wales, tenanted by UK government agencies. The purchase consideration of £9.2m is at a 7.6% discount to the average independent valuations on the assets. To fund the acquisitions, Elite UK REIT successfully completed a private placement, raising £4.0 million from the issuance of 13.56 million units at £0.295 per unit. Read our analysis here.
• Mapletree Logistics Trust (MLT) has completed the divestment of 8 Tuas View Square for $11.18 million, a price 39.8% above its valuation as at Nov 5. Read more here.
• Centurion announced that it has submitted its REIT listing application to the SGX and the Monetary Authority of Singapore, which are currently under review. This follows the company’s announcement in January that it was exploring establishing a REIT. Read more here. Read more here.
• Boustead Singapore is exploring the sale of its stake in some of its logistics and industrial assets to a REIT for the potential listing on the Mainboard of the Singapore Exchange (SGX). There is no certainty that any transaction will materialise as a result of this process.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Where to park your cash for higher yield? T-bills vs Fixed Deposit vs SSB (June 2025)

We share the best ways to earn a yield on your cash through fixed deposits, Singapore T-bills, SSBs and money market funds.

🤓 What we're looking out for next week

• Tuesday, 17 June: Elite UK REIT ex-dividend
• Thursday, 19 June: Fed Interest Rate Decision, 6 month Singapore T-bill auction (BS25112X)

Get the full list of stocks with upcoming dividends here. 

Source: SGX, Bloomberg, Refinitiv

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