STI Hit 4,995 Before the Iran War Started — These 6 Undervalued SGX Stocks Are Actually Still Worth Buying!

The two numbers that matter: The STI hit 4,995 — just 5 points from the psychological 5,000 milestone — on March 2, 2026. Then the Iran war began and it fell to 4,890 on Monday. By Tuesday it bounced to 4,945. The question every Singapore investor is asking: which SGX stocks do you buy in this pullback, and which do you avoid? Here's the definitive answer, with real numbers and current analyst positions.

The STI War-Week Scorecard: Who Won and Who Got Punished

The Iran war created one of the sharpest sector divergences the SGX has seen in years. Before we discuss individual stocks, here's the split that defines this market moment:

🟢 SGX Stocks That Went UP in the War Week

🔴 SGX Stocks That Fell Hard

The pattern is clear: defence, engineering, and energy won. Airlines, property, and financials sold off. This mirrors the global pattern — but with Singapore-specific dynamics that demand separate analysis.

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Why the STI Pullback Is Likely Temporary (But Not All Stocks Recover Equally)

Singapore's economy entered the Iran war conflict from a position of genuine strength:

• GDP grew 4.8% in 2025 — the fastest pace since post-COVID recovery, accelerating from 4.4% in 2024
• Unemployment at 2% — multi-year low, labour market stable
• Inflation moderating — CPI rose 2.4% YoY in January 2026, the lowest since mid-2025
• Current account surplus — Singapore's open economy and fiscal resilience provide macro stability
• MAS monetary policy steady — The Monetary Authority of Singapore maintained its exchange rate-centred monetary policy stance

The STI's pullback from 4,995 to 4,890 is consistent with what Carson Group's analysis of 40 major geopolitical events showed: average first-month decline of just 0.9%, followed by recovery over six months.

What makes Singapore different from, say, a European or U.S. market in this conflict: Singapore is a neutral city-state with deep trading relationships with both Iran (historically) and the U.S./Western bloc. Its strategic position as Asia's financial hub and safe haven destination for private wealth means geopolitical capital inflows often strengthen Singapore assets relative to regional peers during conflict periods.

The 6 SGX Stocks Singapore Investors Should Buy Right Now

🏆 #1 — ST Engineering (SGX: S63)

"Singapore's Homegrown Defence + Digital Infrastructure Company"

ST Engineering is Singapore's most direct beneficiary of the global defence spending surge — and it moved before most investors noticed.

The company operates across three core segments: Commercial Aerospace (MRO — maintenance, repair and overhaul — of commercial aircraft engines and airframes), Defence & Public Security (armoured vehicles, naval systems, command and control), and Urban Solutions & Satcom (smart city infrastructure, satellite communications).

The defence segment provides direct exposure to the same budget tailwinds driving Lockheed Martin and RTX higher globally — but listed on SGX in SGD. Singapore's own defence budget has been expanding, and regional export sales (to ASEAN militaries and Middle Eastern customers) are a growing revenue driver.

The MRO aerospace segment is a counter-intuitive positive for STE even as airlines suffer: when airlines defer new aircraft purchases due to financial pressure, they increase spending on maintaining existing fleets — directly benefiting STE's Aerospace segment.

Why buy now: The war-week rally of 2.81% shows institutional investors are already identifying STE as the Singapore defence proxy. The re-rating from a "utilities-like industrial" to a "defence premium" multiple is still early.

See our related analysis: AI tools for tracking defence company earnings calls

#2 — Sembcorp Industries (SGX: U96)

"Singapore's Energy Transition Champion — With a Middle East Tailwind"

Sembcorp Industries has undergone one of the most dramatic business transformations on the SGX — shedding its offshore marine business and repositioning as a pure-play energy and urban development company with growing renewable and gas power assets.

The Iran war plays directly into Sembcorp's thesis in two ways:

1. Higher energy prices boost its conventional energy assets. Sembcorp operates gas-fired power plants in Singapore and regionally. Higher oil and gas prices improve the economics of its conventional generation assets.

2. Energy security drives renewable acceleration. Every developed nation watching the Strait of Hormuz has reinforced one lesson: domestic, renewable energy production is a strategic necessity. Sembcorp's growing renewable portfolio (solar, offshore wind) in Singapore, India, and the UK is perfectly positioned to capture increased government investment in energy security.

Singapore's own solar ambitions — targeting 2 GWp of solar by 2030 — create a long runway of domestic project wins for Sembcorp.

Why buy now: Sembcorp is one of the few SGX stocks with a direct earnings tailwind from *both* elevated fossil fuel prices *and* accelerating renewable investment. The sector re-rating is underway but not complete.

#3 — Yangzijiang Shipbuilding (SGX: BS6)

"The Quiet Beneficiary of Global Naval and Commercial Demand"

Yangzijiang is one of the most quietly powerful earnings stories on the SGX. As China's largest private shipbuilder (listed in Singapore), it entered 2026 with a record order book — the longest in its history — driven by global demand for new container ships, LNG carriers, and bulk carriers.

The Iran war and Strait of Hormuz disruption creates a multi-year tailwind for Yangzijiang through a mechanism most investors haven't considered: when shipping routes are disrupted, global shipping capacity effectively decreases because vessels travel longer distances. Longer routes = more shipping demand relative to available capacity = higher freight rates = more urgency for new vessel orders.

The global shipping industry is simultaneously dealing with Panama Canal low-water restrictions and Hormuz disruptions — a double capacity compression that's driving shipowners to accelerate their newbuilding programmes.

Why buy now: The order book is already secured. Revenue is locked in years ahead. The war just made the order book more likely to grow, not less.

#4 — Keppel Corporation (SGX: BN4)

"Asset Management + Data Centres + Energy: The Multi-Vector SGX Play"

Keppel's transformation from a sprawling conglomerate (offshore rigs, property, infrastructure, telecoms) into a focused asset management company is one of the most significant structural stories on the SGX.

Under CEO Loh Chin Hua's strategy, Keppel now manages S$79 billion in assets across real estate, infrastructure, and connectivity — generating management fees that are less capital-intensive and more recurring than its historical project-based businesses.

The war market creates specific tailwinds for Keppel:

• Data centre business: Keppel's connectivity and data centre assets benefit from the same AI infrastructure investment thesis driving Constellation Energy and Digital Core REIT
• Infrastructure fund management: With global governments increasing infrastructure spending in response to energy security concerns, Keppel's infrastructure asset management franchise gains relevance
• M1 telecommunications: As Singapore's strategic connectivity hub, geopolitical tensions that drive data traffic toward Singapore-hosted infrastructure benefit Keppel's M1 subsidiary

Why buy now: Keppel is still mid-transformation. The market has not yet fully re-rated it as an asset management company rather than an industrial conglomerate. The current price offers an entry before that re-rating completes.

#5 — CapitaLand Investment (SGX: 9CI) — WAIT FOR BETTER ENTRY

"Quality Asset Manager — But Property Sector Overhang Needs to Clear"

CapitaLand Investment (CLI) is one of Asia's largest real estate asset managers with S$134 billion in fee-earning AUM. Its portfolio spans Singapore, China, India, Southeast Asia, Europe, and the U.S. across REITs, private real estate funds, and the Ascott lodging business.

The war-week sell-off of -1.63% reflects two concerns: general risk-off selling of property-linked stocks, and ongoing uncertainty around CLI's China portfolio (roughly 25% of AUM). China's property market recovery has been slower than expected, and geopolitical uncertainty adds another layer of complexity.

Verdict: CLI is a high-quality business at a reasonable valuation — but the China overhang makes this a wait for better entry situation rather than a buy today. The S$2.40–2.50 range would represent a materially more attractive entry. Set a price alert and be patient.

#6 — Geo Energy Resources (SGX: RE4)

"Singapore's Coal Miner Having a Record Year — With a War Boost"

Geo Energy Resources exceeded its coal production targets in FY2025, achieving record sales and revenue growth. With the Iran war disrupting oil supplies and coal becoming a more relevant stopgap energy source in parts of Asia, thermal coal demand from Indonesia (Geo's primary market) is receiving an uplift.

Honest disclosure: Coal is a structurally declining fuel globally. ESG constraints limit institutional buying. This is not a long-term hold — but for investors comfortable with the cyclical, commodity-driven nature of the business, the FY2025 record performance and dividend provide a short-term income case.

SGX Stocks to AVOID Right Now

SIA Special Note: Singapore Airlines fell 4.74% in the war week. This deserves separate discussion. Analysts at CGS International had previously raised their fair value from S$6.20 to S$6.80 based on revenue and margin assumptions — but those assumptions preceded the Iran war. Jet fuel is the single largest cost item for any airline. If Brent stays above S$85/barrel, SIA's FY2026 earnings guidance will face material downside risk. Avoid adding new positions until the fuel cost picture clarifies.

The Bigger Picture: Singapore as a Safe Haven in a Dangerous World

There is a macro story running underneath all of these individual stock calls that Singapore investors should understand clearly.

OCBC head of equity research Carmen Lee noted: "Foreign investors seeking to diversify away from US dollar-denominated assets may find Singapore equities increasingly attractive." With the USD weakening ~10% over the past year and geopolitical instability increasing globally, Singapore's combination of:

• Political stability and rule of law
• SGD strength as an explicit MAS policy objective
• Tax-efficient investment environment (no capital gains tax, no withholding tax on dividends for Singapore residents)
• World-class corporate governance standards
• Deep financial infrastructure (CDP, SGX, major global bank presence)

...makes Singapore uniquely positioned to attract capital flight from less stable environments.

This isn't just a theory. The STI's 7.5% YTD gain in a year when geopolitical risk has risen sharply is partially explained by this capital rotation. Singapore is becoming more valuable as a financial sanctuary precisely when the rest of the world is becoming less stable.

**MoneySense AI** is built to help Singapore retail investors process these rapidly evolving signals — from SGX earnings calls to global macro news — with the same analytical speed that institutional fund managers deploy.

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Summary: The SGX Playbook for March 2026

Resources & References

• BusinessToday — SGX Opens Higher as Bargain Hunting Follows Global Volatility
• Minichart — Singapore Market Review March 2026: Earnings, Dividends, Fund Flows
• Minichart — Global Market Update March 2026: Middle East Tensions & SGX Analysis
• SGStocksInvesting — What Singapore Stocks to Invest in 2026?
• Trading Economics — Singapore Stock Market (STI) Data
• SIAS — DBS, OCBC All-Time Highs Push STI to New Records
• Joey Choy March 2026 Newsletter — STI Pullback Analysis
• SGX — Straits Times Index Official Data
• MAS — Singapore Economic Outlook 2026

*Disclaimer: This article is for informational purposes only and does not constitute financial advice. SGX-listed securities involve risk, including possible loss of capital. All prices and yields are based on publicly available data as at early March 2026. Please consult a MAS-licensed financial adviser before investing. This content is intended for Singapore residents only.*

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