Broker Name: OCBC Group Research
Date of Report: 03 March 2026
Excerpt from OCBC Group Research report.
Report Summary:
- Singapore equities experienced a knee-jerk sell-off following US and Israel strikes on Iran and subsequent retaliation, but fundamentals are expected to reassert themselves unless the conflict broadens significantly.
- OCBC maintains an Overweight position on Singapore equities, viewing Singapore as a potential safe haven amid global geopolitical tensions, and prefers names levered to aerospace, defence, and MRO upcycles such as SIA Engineering and ST Engineering.
- Higher oil and insurance prices may pressure margins for carriers like Singapore Airlines; prolonged airspace closures could lead to longer flight times and increased fuel burn, while trade flows are expected to be redirected rather than disrupted.
- SATS Ltd is seen as a potential beneficiary from redirected trade flows due to its diversified network, though not directly from higher air freight rates.
- Ongoing defence upcycle, driven by increased military readiness, is likely to support revenue visibility for defence-related companies such as ST Engineering and Nordic Group.
- The risk of stagflation exists if the Strait of Hormuz faces prolonged blockage, potentially causing Brent crude prices to surge.
above is an excerpt from a report by OCBC Group Research. Clients of OCBC Group Research can be the first to access the full report from the OCBC Group Research website : https://www.ocbc.com
