Stocks rebound as hopes of Middle East de-escalation rise: Weekly Market Recap

I made use of the long weekend to squeeze in a short trip to Bangkok, and I’m writing this on the flight back to Singapore, a little more rested, and still thinking about my next Thai meal.

One thing I noticed when I landed in Thailand was that the airport felt much quieter than usual. It was only later that I read that tourist arrivals had fallen quite sharply after the Middle East conflict began, with flights from the region cancelled.

The other thing that really stood out to me was the strength of the Singapore dollar.

Let’s just say it made eating in Bangkok feel a lot more enjoyable. I could still head to my favourite Thai restaurants without thinking too much before ordering the dishes I love.

More broadly, one theme that has emerged from the recent geopolitical tensions is how Singapore continues to attract wealth inflows.

That is also why this week, we take a closer look at how growing capital flows and rising wealth are shaping the next opportunities in Singapore's stock market. While global equities have come under pressure, several Singapore blue chip stocks still managed to gain 8% or more in March.

With Trump’s latest speech suggesting that the Iran conflict could drag on for another two to three weeks, I have also been thinking more about making sure I have sufficient cash and where to park my liquidity pot.

So this week, we look at the best fixed deposit rates and savings accounts with highest interest rates in Singapore. After the T-bill yield jumped in the previous auction, we also look at the latest indicators to see if yields could rise further in the next one.

Coming back from this break, I’ve also been thinking about what Beansprout can do to better support readers during this period of volatility.

Have any ideas? Leave a comment and share them with me.

Happy growing!

Gerald, Founder of Beansprout

⏰ This Week In Markets

🏛 Stocks bounce on hopes of Middle East de-escalation 

What happened? 

Earlier in the week, U.S. President Donald Trump appeared more open to winding down U.S. military involvement in Iran.

But market sentiment weakened again after his Wednesday night address failed to offer a clear timeline for de-escalation.

While some investors may have hoped for signals of a ceasefire or a path to peace, Trump instead said the U.S. objective was nearing completion, but warned that military operations could intensify over the next two to three weeks.

What does this mean?

Uncertainty remains elevated, as investors still do not have clear answers on how long the conflict could last.

There is also concern about how much further oil prices could rise, and whether elevated energy prices may persist for an extended period.

As a result, investors are continuing to assess the potential impact on global economic growth and corporate earnings.

Why should I care?

Global stocks rebounded amid signs of a de-escalation of the Middle East conflict, even as oil prices remain elevated. Learn more about how to gain exposure to oil here.

The S&P 500 posted its first weekly gain in six weeks, finding technical support around its 200 day moving average.

The U.S. 10 year government bond yield edged lower as fears of further rate hikes eased, helped by comments from Federal Reserve Chairman Jerome Powell that calmed some recent inflation concerns.

In Singapore, the Straits Times Index also rose modestly, led by Sembcorp Industries and OCBC. OCBC’s record share price has pushed its market capitalisation above S$100 billion, making it one of only two Singapore listed companies to reach that milestone.

Learn more about what we're looking out for in the markets next.

🚗  Moving This Week

• DBS said it has very limited direct exposure to the Middle East, but warned that a prolonged conflict that keeps oil prices at or above US$100 a barrel could create broader knock-on risks. CEO Tan Su Shan said the bank’s main concern is not first-order exposure, but second-order effects such as inflation, weaker consumer demand and supply-chain disruption.
• ST Engineering won a six-year subcontract worth S$600m from Abu Dhabi Ship Building to design and supply platform systems for eight missile gun boats being built for the Kuwait Naval Force, with three vessels to be constructed at its Singapore shipyard. The boats will be based on ST Engineering’s Fearless-class patrol vessel, extending its Middle East defence momentum after ADSB’s earlier 2021 award for four offshore patrol vessels for the UAE navy.
• Yangzijiang Shipbuilding secured US$980m of new contracts in Q1 2026 for 22 vessels (17 container ships, four oil tankers and one bulk carrier) slated for delivery in 2028–2029. After accounting for new wins and deliveries, its outstanding order book stands at about US$22.8b for 256 vessels, with the group saying the contracts are not expected to materially impact FY2026 NTA or EPS.
• OUE REIT is stepping up capital recycling, with plans to redeploy proceeds from potential sales of mature Singapore assets into higher-yielding opportunities, including in Australia. A key asset under review is One Raffles Place in the CBD, which the REIT is exploring for a possible sale as part of efforts to sharpen portfolio returns. 

Source: Bloomberg, CNBC, Business Times, Edge Singapore

💡 The Big Important Story

How rising wealth in Singapore is shaping the next opportunities in its equity market

Explore how growing capital flows may create new opportunities beyond blue-chip stocks in Singapore's equity market.

🤓 What we're looking out for next week

• Wednesday. 8 April: DBS ex-dividend
• Thursday, 9 April: 6-month Singapore T-bill auction
• Friday, 10 April: US Consumer Price Index (CPI) data

Get the full list of stocks with upcoming dividends here. 

Source: SGX, Bloomberg, Refinitiv

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