<div id="readability-page-1" class="page"><div>SINGAPORE - Singapore stocks and gold prices fell as the widening crisis in the Middle East pushed oil prices above US$100 a barrel, stoking fears that a fresh bout of inflation could complicate the outlook for global interest rates.The benchmark Straits Times Index opened at 4,707.41 on March 9, down 140.59 points, or 2.9 per cent. Singapore Airlines was among the biggest decliners on the index, falling 4.21 per cent to $6.37 as at 10.30 am on March 9, as global air travel remain disrupted in the second week of the conflict. Yangzijiang Shipbuilding also fell, dipping nearly 5 per cent to $3.99 after climbing more than 16 per cent the previous week following its earnings announcement. The maritime company had reported a net profit of 4.5 billion yuan (S$827.4 million) for the second half ended Dec 31, 2025, up 24.6 per cent from 3.6 billion yuan in the same period a year earlier.Aviation and shipping have been weighed down by a surge in oil prices, driven by strikes on energy infrastructure and disruptions to shipping through the Strait of Hormuz, which carries about 20 per cent of the world’s oil trade. Several Gulf nations have also cut oil output, raising fears of tighter crude supplies.Some oil and energy stocks on the SGX, including Rex International, Geo Energy Resources and RH Petrogas, bucked the broader market decline. But Sembcorp Industries, a major importer and retailer of natural gas in Singapore, fell further, sliding 1.75 per cent to $5.62 in early trade. The three local banks also traded lower as at 10.30am on March 9. DBS fell 2.3 per cent to $53.73, while OCBC Bank dropped 2.79 per cent to $20.24. UOB retreated 2.25 per cent to $35.26.Other index constituents also fell, with Singtel losing 2 per cent to $4.90 and Keppel shedding 4.81 per cent to $11.68. ST Engineering fell 3 per cent to $10.62, despite analysts suggesting that its defence and public security segment will remain a structural growth driver amid geopolitical tensions and rising global defence budgets. The counter is still up about 5 per cent over the past month.Shares of Catalist-listed CNMC Goldmine fell 4.76 per cent to $1.80, though the counter remains up nearly 40 per cent over the past month, tracking the growth in gold prices.Gold bullion slipped below US$5,100 an ounce in early trading after posting its first weekly decline in over a month. Gold prices have been volatile in recent weeks, spiking about three per cent to breach US$5,300 when markets opened on March 2, after the United States and Israel launched strikes on Iran.The yellow metal has since pared some gains as the US dollar strengthened and energy prices surged, fuelling concerns that the US Federal Reserve may keep interest rates higher for longer, or even raise them further. This would weigh on assets that do not pay interest, such as precious metals. Gold is still up nearly 18 per cent since the start of the year.Other Asia markets declined on March 9. Japan’s Nikkei index fell 6.75 per cent, Taiwan’s TAIEX index lost 5.61 per cent, while Hong Kong’s Hang Seng Index dropped 3.11 per cent. Mr Glenn Thum, research manager at Phillip Securities Research, said the STI’s decline was more muted due to its defensive, bank-heavy composition and limited exposure to the tech and semiconductor sectors that have driven steep sell-offs in other Asian markets.The geopolitical energy shock reinforces a “higher-for-longer” interest rate outlook, which protects the lending margins of the local banks, he noted. “Furthermore, local maritime stocks are acting as a natural hedge against energy disruptions, while the STI’s strong dividend yields continue to attract regional capital seeking stability amidst the broader market volatility,” said Mr Thum.</div></div>

600547

600489

Singapore stocks and gold prices fell as the Middle East crisis escalated, pushing oil prices above US$100 a barrel. The Straits Times Index dropped 2.9% to 4,707.41, with Singapore Airlines and Yangzijiang Shipbuilding among the biggest decliners. Gold prices also declined, influenced by rising energy costs and concerns over prolonged high interest rates. Other Asian markets experienced similar declines, while local banks showed resilience due to their defensive nature. Analysts noted that local maritime stocks may serve as a hedge against energy disruptions, and the STI's strong dividend yields attract regional capital.

S’pore stocks, gold extend drop as Middle East crisis deepens