SINGAPORE, March 7, 2026, 15:31 SGT
Singapore shares barely budged on Friday, capping the session with the Straits Times Index (STI) up just 1.69 points at 4,848.25. Still, a tough week for the Singapore Exchange: the benchmark of 30 blue chips dropped 2.9% over five days as turmoil in the Middle East drove oil prices higher and sapped risk sentiment throughout Asia.
The STI topped 5,000 back in mid-February, but that didn’t last. The index’s quick retreat highlights just how sharply a spike in oil prices can rattle Southeast Asian stocks—especially in Asia, where refiners and buyers are still deeply tied to Middle Eastern crude.
The path lower was jagged. The STI slipped 2.1% Monday, managed a 0.5% bounce Tuesday, gave up another 2.1% Wednesday, then clawed back 0.7% Thursday before barely moving on Friday. That Wednesday drop coincided with a deeper hit across the region: South Korea’s Kospi plunged 12.1%, Japan’s Nikkei 225 shed 3.6%, and Hong Kong’s Hang Seng lost 2%.
ST Engineering popped this week, notching a 9.8% gain. Jardine Matheson, on the flip side, slid 8.5%. Singapore Airlines gave up 7.4%, and SATS also took a hit, down 6.9%, as traders reacted to pricier jet fuel and ongoing flight snags.
Selective buying cropped up on Friday. Hongkong Land popped 2.8%, topping the STI, but City Developments dropped 1.9%. The trio of local banks diverged during the session, and all three still closed the week in the red: DBS down roughly 3.7% over the week, OCBC off 2.8%, UOB 2.4% lower.
Stocks and other so-called “risk assets” have been finding some stability as oil prices and the U.S. dollar pulled back a bit, according to Stephen Innes, managing partner at SPI Asset Management. “Animal spirits” are returning, said Interactive Brokers senior economist Jose Torres, with investors deciding the crisis may not be spiraling as fast as many had feared. The Business Times
The uneasy calm hinges on crude remaining in a tight band, Innes pointed out. Saxo’s Charu Chanana flagged that the market’s currently pricing a conflict that “could drag on.” Brent finished at $85.41 a barrel on March 5, according to Reuters, with U.S. crude vaulting over 12% on March 6. Reuters also noted that Asian refiners have already hit snags trying to source quick Middle East shipments. The Business Times
Selling pressure eased but didn’t vanish on Friday. Advancers led decliners 342 to 233 on the broader Singapore market, as S$2.1 billion worth of shares traded hands. That kind of volume suggests buyers came back in, though with caution.
