Singapore Stock Market Shows Resilience Amid US-Iran War
US-Iran war: Why is Singapore stock market among the least affected by Middle East crisis?
Mint
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Despite the ongoing US-Iran war, the Singapore stock market remains stable, with the Straits Times Index (STI) holding near all-time highs. This resilience is attributed to Singapore's robust economic growth and a significant equity market development program, contrasting sharply with declines in other major markets.
- 01The Straits Times Index (STI) is flat since the US-Iran war began on February 28, 2023.
- 02Singapore's economy grew by 4.8% last year, outperforming estimates.
- 03A S$5 billion equity market development program was announced to boost local investment.
- 04High dividend-paying companies dominate the STI, enhancing its stability.
- 05The ongoing AI boom is positively impacting sectors like manufacturing and logistics.
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The Singapore stock market has demonstrated remarkable resilience amid the geopolitical tensions stemming from the US-Iran war, with the Straits Times Index (STI) remaining flat since February 28, 2023. In contrast, the Indian stock market benchmark Nifty 50 has fallen over 6%, and the S&P 500 has decreased by 1% during the same period. This stability is largely driven by Singapore's strong economic growth, which expanded by 4.8% last year, exceeding expectations. Additionally, a S$5 billion equity market development program announced in February 2025 aims to enhance the local asset management ecosystem and attract more investors. The STI's composition, heavily weighted towards high dividend-paying companies like DBS Group Holdings and Oversea-Chinese Banking Corporation, further contributes to its appeal. Looking ahead, Singapore's market performance will hinge on growth-inflation dynamics and external factors such as US tariffs, with growth projected to ease to about 2% in 2026 due to geopolitical uncertainties. The ongoing AI boom is expected to bolster sectors such as manufacturing and logistics, indicating a positive outlook for the domestic economy.
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The resilience of the Singapore stock market provides a stable investment environment for local and foreign investors, potentially leading to increased confidence in the economy and more investment opportunities.
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