Markets slip as Middle East conflict escalates: Weekly Market Recap

I was having a conversation with a friend this week who said, “You must be very busy with all the volatility in the markets.”

My response was, “Actually, it’s the opposite. When markets get volatile, there’s usually less for me to do.”

That might sound strange, but it’s something I’ve come to believe over the years. As we share in our write-up on the Middle East conflict, when markets get uncertain, the most important thing is to stay disciplined and stick to your core plan.

My philosophy has always been simple. Have enough emergency cash, and structure my investments into different pots such as for growth, income, or opportunities. Then stick to the plan.

With uncertainty rising again, one of the first things I always check is my cash buffer. This week, we compare T-bills, fixed deposits and savings accounts to see where you can park spare cash and still earn a decent yield. We also discuss what to expect for the upcoming T-bill auction on 12 March.

For my growth portfolio, I have been adding some exposure to gold as a hedge against geopolitical risks. If you are thinking about investing in gold too, we share how you can gain exposure to physical gold in a simpler way.

For my income portfolio, we compare the latest earnings from DBS, UOB and OCBC to see which of the Singapore banks currently offers the best visibility on dividends. 

I have been telling a few friends recently that in this season of my life, I find myself valuing security more than excitement when it comes to investing.

The recent events in the Middle East are unfortunate, and also a reminder of how unpredictable the world can be.

It reinforces why I try to build my finances in a way that can give me peace of mind, even when the headlines are unsettling.

Gerald, Founder of Beansprout

⏰ This Week In Markets

📊 Middle East conflict drives market selldown

What happened? 

The Middle East conflict escalated sharply following U.S. and Israeli military strikes on Iran on 28 February.

What began as a targeted military operation quickly spiralled into a wider regional confrontation. 

U.S. President Donald Trump has shown no sign of pulling back. He said the military had originally projected four to five weeks to complete operations, suggesting that the conflict may not be resolved quickly. 

What does this mean?

Oil prices jumped on concerns that the conflict could disrupt supply and spill over into the wider region. 

The uncertainty over how long the conflict will last, and whether key shipping routes or oil facilities could be affected, has also led investors to reassess inflation risks. 

If energy prices stay elevated, central banks such as the U.S. Federal Reserve may have less room to cut interest rates, which could keep financial markets volatile.

Why should I care?

Global stocks declined in volatile trading, while oil prices surged on concerns about supply disruptions. Gold also moved higher as investors sought safe-haven assets, although prices eased from the sharp gains seen earlier in the week.

Losses in U.S. markets were compounded by weaker employment data, after non-farm payrolls fell by 92,000 in February, raising concerns that growth may be slowing at a time when interest rates are still high.

Singapore stocks also moved lower in line with global markets. Declines in the Straits Times Index (STI) were led by transport-related names such as SIA and SATS, while some investors took profit in stocks that had rallied strongly in recent months. 

One exception was ST Engineering, which climbed to a new high as investors viewed it as a beneficiary of rising global defence spending.

Learn more about how the US-Israel-Iran conflict may impact markets and what we are doing with our portfolios here.

🚗  Moving This Week

• Singapore Airlines and SATS shares fell 4.7% and 5.9% respectively on 2 Mar after US–Israel strikes on Iran triggered Middle East airspace closures and flight disruptions, prompting SIA Group to cancel 26 SIA and Scoot flights between 28 Feb and 7 Mar. SIA said it is monitoring the situation and may adjust flight paths as needed, warning that further flights could be affected. Read more here.
• Sats reported a 20.4% rise in 3Q FY2026 net profit to S$84.7 million, up from S$70.4 million a year earlier. The group attributed the stronger showing to improving cargo volume growth across Asia, Europe and the Middle East, adding that its global network continued to benefit from trade-flow shifts driven by geopolitics and tariff policies. 3Q revenue rose 8% to S$1.6 billion, led by gateway services, where cargo volumes climbed 7.3% year on year to a record 2.5 million tonnes. Read more here.
• Seatrium said it has delivered a US$475 million wind turbine installation vessel to Maersk Offshore Wind to support wind farm development. The vessel is set to sail in March for its first job at the Empire Wind project off New York, where it is expected to help supply clean energy to 500,000 homes. The delivery follows an arbitration dispute in late 2025, after Maersk sought to terminate the construction contract signed with a Seatrium unit. Read more here.
• Sheng Siong reported a 14% rise in 2H FY2025 net profit to S$77.1 million, up from S$67.6 million a year earlier, as a better sales mix and stronger revenue more than offset higher operating costs. In its Feb 27 results, 2H revenue climbed 12.7% to S$805.3 million (from S$714.5 million). Read more here.
• DFI Retail reported FY2025 underlying profit of US$270 million, up 35% from US$201 million a year earlier, landing at the top end of its guidance. The improvement was driven by a recovery in like-for-like sales, better margins, and portfolio moves including the divestment of a minority stake in Yonghui Superstores. The board proposed a US$0.105 final dividend under its new 70% payout policy (vs US$0.07 for FY2024). Read more here.
• UMS Integration acquired the remaining 30% stake in aluminium alloy products supplier Starke Singapore for S$8.2m, making it a wholly owned subsidiary to streamline operations and better manage overheads, with Starke also supplying precision engineering players including UMS. The group said the deal will be funded via internal resources and/or borrowings and is not expected to have a material impact on FY2026 NTA or EPS. Read more here.
• A GuocoLand-led consortium topped the state tender for the Lentor Central 99-year leasehold residential site with a S$657.1m bid, translating to S$1,277.71 psf for a plot that can yield about 560 homes. The site (next to Lentor MRT and Lentor Modern) is the eighth GLS private housing parcel in Lentor Hills Estate and the only one zoned “residential with commercial at first storey”, with the consortium indicating plans for up to ~562 units across three towers. Read more here.
• CSE Global has kicked off an early-stage strategic review at the request of controlling shareholder Heliconia Capital (Temasek), after receiving a non-binding preliminary expression of interest from an unnamed party. The company said discussions have not begun and there is no certainty any transaction will materialise, even as it moves to appoint a financial adviser. The review comes shortly after CSE reported 2H FY2025 net profit up 87.1% to S$21.2 million on 22.1% revenue growth to S$528 million. Read more here.
• Marco Polo Marine raised about S$21 million in gross proceeds via a private placement to fund its expansion plans. In its Wednesday filing, the group said the 144.9 million new shares were issued at S$0.145 each, and are expected to be listed on the SGX mainboard on Mar 5, with trading from 9am. The placement lifts total issued ordinary shares to about 3.9 billion, from 3.8 billion. Read more here.
• There will be no changes to the 30 constituents of the Straits Times Index (STI) following the latest quarterly review. However, SIA Engineering will replace CapitaLand Ascott Trust on the reserve list from Mar 23. Learn more about the Straits Times Index (STI) here.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

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🤓 What we're looking out for next week

• Monday, 9 March 2026: BHG Retail REIT ex-dividend
• Tuesday, 10 March 2026: Lendlease REIT preferential offering opens
• Wednesday. 11 March 2026: US Consumer Price Index (CPI) data
• Thursday, 12 March 2026: Singapore 6 month Singapore T-bill Auction
• Friday, 13 March 2026: US PCE Price Index data

Get the full list of stocks with upcoming dividends here. 

Source: SGX, Bloomberg, Refinitiv

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