Singapore stocks tumble, SIA closes down 4.7% on Middle East turmoil; MAS monitoring developments

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SINGAPORE – Asian stock markets, including Singapore’s, fell sharply on March 2 as widening conflict in the Middle East triggered by a US-Israeli attack on Iran sent investors heading for the relative safety of the US dollar and gold.

Japan’s Nikkei index slumped 1.4 per cent while Hong Kong’s Hang Seng slid 2.1 per cent. In the US, S&P 500 futures fell 1.1 per cent.

Singapore’s Straits Times Index (STI) closed 2.09 per cent lower at 4,890.86.

The Monetary Authority of Singapore (MAS) on March 2 said that it is closely monitoring developments arising from the ongoing situation in the Middle East and assessing the impact on the domestic economy and financial system.

It said that Singapore’s foreign exchange and money markets continue to function normally.

“The Singapore dollar nominal effective exchange rate remains within its appreciating policy band, which will continue to dampen imported inflationary pressures,” said MAS.

“As noted in the January monetary policy statement, MAS is in an appropriate position to respond, if necessary, to risks to medium-term price stability,” it added.

SIA was among the biggest decliners. Airline stocks were battered as global air travel remained heavily disrupted on March 2, with key airport hubs in the Middle East – including Dubai and Abu Dhabi in the United Arab Emirates, and Doha in Qatar – closed for a third day. Also affecting the industry was the jump in oil prices as shipping on the Strait of Hormuz halted, threatening disruption to crude supplies.

Singapore Airlines closed at $6.84, down 4.7 per cent from Feb 27’s closing price of $7.18.

The three local banks also saw big price drops over concerns on how the escalating conflict might hurt the Singapore economy. DBS Bank ended down 2.6 per cent at $55.63, while OCBC Bank fell 2.3 per cent to $20.93 and UOB retreated 1.8 per cent to $36.30.

Other index constituents also fell, with Singtel losing 2.6 per cent to $4.91.

Sembcorp Industries, a major importer and retailer of natural gas in Singapore, fell 3.4 per cent to $5.91 as the conflict triggered a surge in oil prices and raised risks of disruption in gas markets.

Offshore engineering firm Seatrium slumped 2.9 per cent to $2.33. Seatrium won a contract, through its subsidiary Seatrium Offshore Technology, in February 2025 from shipyard International Maritime Industries to provide equipment, as well as a licence to build a rig in the Middle East and North Africa region.

A Seatrium spokesperson said that the firm is monitoring developments in the Middle East closely and will take appropriate steps as the situation evolves. “Our direct business exposure to the impacted areas is limited. We have no major projects in the Middle East in our order book.”

Gold rallies

Gold prices climbed strongly as investors sought safety amid escalating geopolitical tensions and deepening global economic uncertainty. Spot gold rose 3 per cent to US$5,409.70 an ounce in Singapore.

Singapore-listed gold mining company CNMC Goldmine opened at $1.85 and shot up more than 15 per cent to close at $1.99.

The US dollar rose, with the Bloomberg Dollar Spot Index, a key gauge of the US currency, climbing 0.7 per cent.

Indonesia’s central bank said it is intervening in the foreign-exchange markets as the Iran crisis hits the rupiah. It fell 0.5 per cent to 16,868 per US dollar as at 3.59pm as other Asian currencies weakened.

The US dollar strengthened against the Singapore currency, rising 0.5 per cent to 1.2713 Singapore dollars as at 5.53pm.

OCBC Bank executive director for wealth advisory Afdhal Rahman said that geopolitical developments seldom have a lasting impact on markets unless there is significant economic fallout.

“As we have seen in many previous geopolitical episodes, this too shall pass,” he said, adding that the Russia-Ukraine war remains unresolved after more than three years, yet markets still soared many times over despite periods of volatility. Markets also rallied in 2025 despite a series of geopolitical tensions weighing on risk sentiment, he noted.

“Investors should not panic and should maintain a long-term perspective. This is part and parcel of investing in a geopolitically fraught world,” he said.

Correction note: In an earlier version, we said that Seatrium has a major presence in the Middle East. Seatrium has since clarified that they do not have major projects in the region. We have also added Seatrium’s statement where it said it is monitoring developments in the Middle East closely.