Stocks decline with oil price volatility: Weekly Market Recap

I was chatting with a friend about his travel plans this week, and he told me he is now not so sure if his second half holiday is still happening.

Not because he changed his mind. Not because his leave was rejected. But because oil prices have decided to become part of the conversation too.

As oil prices surged, airlines have started raising fuel surcharges. Cathay Pacific raised fuel surcharges on all flights by 34% from April, while Singapore Airlines has reportedly increased airfares across its network in response to higher jet fuel prices.

So yes, the impact of the Middle East conflict is no longer confined to headlines. It is starting to show up in places much closer to home, including the price of your next holiday.

And of course, it does not stop there.

We have also seen the Singapore T-bill yield rise to 1.46% in the latest auction, as higher inflation expectations and rising US bond yields pushed yields up.

Singapore REITs have come under pressure this month too, as investors worry that interest rates could stay higher for longer. In this issue, we look at what is driving the weakness in the sector, whether the recent pullback may present a buying opportunity, and why CapitaLand Ascendas REIT’s recent acquisitions in Singapore and Japan are worth paying attention to.

Even precious metals have not been spared. Gold and silver have pulled back, and this week we look at what is behind the move and how investors can think about positioning through the volatility.

Still, it is not all bad news. We also highlight three Singapore blue chip stocks that have managed to gain despite the rise in oil prices. If you are looking to take advantage of the recent market pullback, we also share a a few exchange traded funds (ETFs) that allow you to gain broad based exposure in a simple way. 

As always, with so much happening in markets, I think it is worth remembering why we invest in the first place. So we can continue to enjoy the things we value, whether that is travelling, spending time with loved ones, or simply having more freedom to live life on our own terms.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

🛢️ Elevated oil prices lead to market pullback

What happened? 

Oil prices remained volatile and elevated as the Middle East conflict entered its fourth week.

Brent crude climbed above US$110 per barrel after US Secretary of State Marco Rubio warned that the war in Iran could drag on for weeks.

That move reversed earlier optimism that tensions could ease, after U.S. President Donald Trump said he had instructed the military to postpone strikes on Iran’s power plants and energy infrastructure for five days to allow for negotiations.

What does this mean?

Investors worry that the longer the conflict continues, and the longer oil prices remain elevated, the greater the risk to the global economy.

This comes as the Fed has already cautioned that inflation may stay higher than expected, leading markets to scale back expectations for interest rate cuts.

In response, bond yields have risen, with the US 10-year government bond yield climbing above 4.4%.

Why should I care?

US stocks ended the week lower again, with the S&P 500 Index, Dow Jones Industrial Average, and Nasdaq Composite each posting a fifth consecutive weekly decline amid volatile trading.

Gold prices slipped further as bond yields rose.

Singapore shares also came under pressure, led by REITs as higher bond yields weighed on sentiment. The biggest losers included Keppel DC REIT, Frasers Logistics & Commercial Trust, and Mapletree Logistics Trust.

🚗  Moving This Week

• CapitaLand Ascendas REIT is acquiring three assets across Singapore and Japan for S$1.4 billion, marking its entry into Japan with a 49% stake in a hyperscale data centre in Greater Osaka. In Singapore, CLAR will buy 25 Loyang Crescent for S$504.2 million and a 50% stake in Ascent at 2 Science Park Drive for S$245 million. The Japan data centre stake will cost S$620.7 million. The acquisitions are expected to be DPU-accretive, with pro forma DPU rising about 2.1% if all three deals had been completed on Jan 1, 2025. Read our analysis here.
• Keppel and Simba Telecom have agreed to extend the long-stop date for the proposed M1 transaction to May 21. In a Mar 26 filing, Keppel said the parties had submitted a consolidation application to IMDA on Sep 26, 2025. The proposed deal, first announced in August 2025, would see Keppel divest M1’s telco business to Simba at an enterprise value of S$1.43 billion in cash. Read more here.
• Keppel CEO Loh Chin Hua sees AI and the energy transition as key drivers of the group’s push towards S$200 billion in funds under management by 2030. Having transformed from an offshore rig builder into a global asset manager, Keppel is now leaning on these two structural trends to fuel future infrastructure demand. With its asset-light strategy now fully in place, the group ended 2025 with S$95 billion in FUM and expects to cross S$100 billion in 2026.
• AEM has partnered ASE Technology to develop next-generation test solutions for the fast-growing AI and high-performance computing markets. The collaboration will pair AEM’s proprietary test capabilities with ASE’s manufacturing scale. As part of the deal, AEM will raise about S$12 million through a private placement of 3.35 million shares at S$3.591 each to an ASE subsidiary, representing about 1.1% of its issued share capital. Read more here.
• AvePoint, backed by a US$481 million cash war chest, is now looking at acquisitions above US$100 million as it aims to reach US$1 billion in annual recurring revenue by 2029. The Nasdaq- and SGX-listed firm has historically leaned on organic growth, but CEO Jiang Tianyi signalled a shift towards larger, more strategic deals to speed up that journey. 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

Singapore REITs pull back as interest rates rise. Are they a buying opportunity?

Singapore REITs have pulled back as interest rates rise. We break down what is happening, what to watch next, and whether the pullback could create selective buying opportunities.

🤓 What we're looking out for next week

• Tuesday, 31 March: CapitaLand Ascendas REIT ex-dividend
• Wednesday. 1 April: Amova-StraitsTrading Asia ex Japan REIT ETF ex-dividend
• Friday, 3 April: US Non-farm payroll data

Get the full list of stocks with upcoming dividends here. 

Source: SGX, Bloomberg, Refinitiv

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