Sats, SIA lead Singapore stock market tumble on Iran war fears; STI down 2.1%

[SINGAPORE] Ground handling and in-flight catering service provider Sats and flagship carrier Singapore Airlines (SIA) led a steep decline among Singapore stocks on Monday (Mar 2), after the US and Israel’s strikes on Iran left global air travel in turmoil.

The benchmark Straits Times Index (STI) fell 2.1 per cent or 104.21 points to finish at 4,890.86, with 25 of the 30 blue-chip index constituents logging losses.

Across the wider Singapore market, decliners outpaced advancers 511 to 191, with 2.5 billion securities worth S$3.8 billion changing hands.

Sats was the biggest loser among the blue-chip counters, retreating 5.9 per cent or S$0.23 to close at S$3.69. SIA fell 4.7 per cent or S$0.34 to S$6.84.

The top gainer among the STI constituents was defence contractor ST Engineering , which gained 2.8 per cent or S$0.28 to S$10.25.

The trio of local banks all closed lower. DBS lost 2.6 per cent or S$1.49 to finish at S$55.63, OCBC fell 2.3 per cent or S$0.50 to S$20.93, and UOB declined 1.8 per cent or S$0.67 to S$36.30.

Meanwhile, the iEdge Singapore Next 50 Index gained 0.4 per cent to finish at 1,510.50 points.

Geo Energy Resources was the biggest gainer on the index, climbing 3.6 per cent or S$0.015 to S$0.43.

DBS chief investment officer Hou Wey Fook said: “We expect the usual flight to safety to take place this week, as investors flock to treasuries and gold. As the Iranian crisis continues, we see strong tailwinds for gold as the investors seek to protect their portfolios from geopolitical headwinds.”

Key regional indices fell amid the global uncertainty. Hong Kong’s Hang Seng Index fell 2.1 per cent, Japan’s Nikkei 225 index dropped 1.4 per cent, South Korea’s Kospi shed 1 per cent, and the FTSE Bursa Malaysia KLCI declined 1 per cent.