Dip-buying drives S’pore stocks higher as retail investors pile in amid Iran conflict

Retail Investors Fuel Singapore Market Rally Amid Geopolitical Storm

SINGAPORE – Despite the shadow of conflict in Iran casting uncertainty over global markets, the Singapore stock market closed the week on a high note. The Straits Times Index (STI) edged upward, bucking broader trends of volatility driven by Middle East tensions and erratic signals from international leaders. Retail investors, undeterred by the chaos, piled into shares at discounted prices, turning what could have been a rout into a surprising recovery. This dip-buying frenzy highlights a resilient investor base in the city-state, quick to spot value even as oil prices spiked and supply chains strained under the weight of disrupted shipping routes like the Strait of Hormuz.

Data from recent trading sessions shows retail participation reaching impressive levels. As of late March, these investors snapped up $638 million worth of local shares, pushing cumulative net buying in the first quarter of 2026 to $675 million. This follows a robust 2025 where they were net buyers to the tune of $2.6 billion. The focus has been on battered sectors offering long-term promise, with financials, real estate investment trusts (Reits), and consumer cyclical stocks leading the charge. The 15 most-bought stocks by retail averaged a 7.9 per cent dip in March, contrasting sharply with gains in those they sold off.

Key Sectors and Stocks Shine Through the Volatility

Banking giants stole the spotlight, with DBS Group, United Overseas Bank, and OCBC Bank each climbing more than 2.5 per cent over the week. Singapore Exchange (SGX) stood out even more, surging 4.5 per cent to close at $19.67 on March 27. Singapore Airlines also notched gains, rising nearly 2.5 per cent from $6.50 to $6.66 in the same period. These moves came as energy shocks from the Iran conflict sent crude prices toward $120 a barrel, hammering some global indices but creating buying opportunities locally. While the S-Reit index dropped 7 per cent in March – outpacing the STI's milder 2 per cent decline – retail money flowed in, betting on a rebound.

Certain resilient names thrived amid the turmoil. Defence-related, marine, and offshore firms benefited from supply disruptions and rising military needs, while palm oil and energy plays rode higher commodity prices. Blue chips like DFI Retail Group and Wilmar International posted strong gains from late February to mid-March, with DFI up 12.2 per cent and Wilmar advancing 10.8 per cent despite the oil surge. Year-to-date, these stocks have shown even broader strength, underscoring Singapore's appeal as a safe haven in choppy waters.

"Retail investors are buying at low prices on expectations that stock prices will recover fast when the crisis passes," said an analyst, capturing the optimistic mindset driving the surge in activity.

Broader Context and Investor Sentiment in Uncertain Times

The Iran conflict, erupting around late February 2026, has reshaped market dynamics. Global stocks slid on fears of prolonged war, but Singapore's retail crowd – honed by years of dip-buying success since the pandemic trading boom – saw it differently. In Asia, similar patterns emerged, with traders in places like Seoul loading up on margin to chase recoveries. Here, retail net buying contrasted with some institutional selling, per fund flow data, signaling confidence in local fundamentals. Volatility offered bargains in quality names, and with the US Federal Reserve holding rates steady, eyes now turn to how long the Middle East standoff lasts.

This behaviour echoes habits formed in bull markets, where buying the dip has often paid off handsomely. Singapore's market, relatively stable compared to sharper drops elsewhere, drew money toward sectors poised for post-crisis gains. As tensions persist, the question lingers: will this retail enthusiasm sustain, or will escalating risks prompt a pullback? For now, it has steadied the ship, proving that in volatile times, opportunity often hides in the downturns.

In summary, dip-buying by retail investors propelled Singapore stocks higher last week, with banks, exchanges, and select blue chips leading amid Iran conflict fears. Strong net buying in financials and Reits signals optimism for a quick recovery, highlighting the city-state's market resilience.