ST Engineering jumps with defence in spotlight; SGX-listed oil and gas, offshore and marine stocks pop
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The Straits Times Index (STI) rebounded to over 4,940 points shortly after opening on March 3, after falling below the 4,800-point mark in the previous day.
PHOTO: THE BUSINESS TIMES
SINGAPORE - The Straits Times Index (STI) rebounded to over 4,940 points shortly after opening on March 3, after falling below the 4,800-point mark on rising geopolitical risks on March 2.
On Feb 28, the US and Israel launched a military campaign against targets in Iran killed Iran’s supreme leader
The index pared gains to close on March 3 at 4,916.65 points as the situation in the Middle East continued to unfold with Israel hitting Beirut and Tehran, and US President Donald Trump warning Iran of escalating strikes.
ST Engineering led the advance on the STI, rising nearly 9 per cent to $11.16 when the market opened, before paring gains. The stock closed the day more than 7 per cent up at $10.99.
Analysts expect ST Engineering’s defence and public security segment to remain a structural growth driver, as rising geopolitical tensions lift global defence budgets. The group had already doubled its international defence wins to $600 million in 2025 and is targeting $1.2 billion in 2026.
While some see ST Engineering headed for more gains and have upgraded their target prices for the stock, others warned that its current valuation is starting to look expensive at around 40 times earnings.
Shares of offshore and marine engineering firm Seatrium, which fell to $2.26 on March 2, also rebounded, closing on March 3 at $2.35, up 0.86 per cent.
Earlier on Feb 27, before recent geopolitical shocks to markets, it reached a 2026 high near $2.70.
O&M, oil and gas stocks rise
Several other offshore and marine stocks listed on the Singapore Exchange also jumped.
Offshore vessel builder and charterer Nam Cheong climbed to a record $1.58 on March 3, before closing the day at $1.53, up more than 7.7 per cent.
The company had already hit a previous record last week, when it rallied after securing a US$64.5 million (S$82.4 million) order for four offshore support vessels from a United Arab Emirates-based customer, its first shipbuilding contract in over 10 years.
Nam Cheong’s peers also rose, with ASL Marine closing up 8 per cent at 33.5 cents, and Marco Polo Marine up 7.5 per cent to 17.3 cents.
Rex International, an oil exploration and production company operating in Oman as well as Germany and Norway, edged up to close at 18.3 cents on March 3; while RH Petrogas, an oil and gas company focused on exploring and producing oil and gas in the ASEAN region, rose to close at 22 cents for the day.
Samudera Shipping, which transports mainly containerised cargo on trade routes connecting various ports in South-east Asia, the Indian subcontinent, the Far East and the Middle East, rose on March 3. Its shares closed at $1.11, up 4.7 per cent.
Aviation, hospitality stocks down
Stocks in the aviation and hospitality sectors were muted for a second consecutive day.
Singapore Airlines, which fell 4.7 per cent to $6.84 at the close on March 2, remained subdued on March 3, closing the day at $6.78 as flight uncertainty and higher fuel costs weighed on the stock.
Just last week, the airline had reported higher passenger demand in the third quarter of its financial year, with SIA and its budget carrier Scoot carrying 10.9 million passengers, 6.3 per cent more year on year. The amount earned per passenger for each kilometre flown had also risen.
Ground handling and in-flight catering service provider SATS, which rebounded to $3.79 early on March 3 after falling 5.9 per cent to $3.69 at the close on March 2, pared gains. The stock closed at $3.69.
SIA Engineering, which provides aircraft maintenance, repair and overhaul services, closed at $3.38 on March 3. The shares are down from a high of $3.52 at the close of Feb 27.
Phillip Capital analysts on Feb 25 reiterated their “accumulate” call on SIA Engineering following strong third-quarter results and positive growth prospects, with a target price of $4.14.
The hospitality sector showed signs of pressure, with tensions mounting in the Middle East and air travel looking more uncertain.
City Developments, which owns, operates and manages some 160 hotels under its subsidiary Millennium and Copthorne Hotels, closed on March 3 at $9.43, compared with $9.82 at the close of Feb 27.
Meanwhile, UOL, which owns and operates Parkroyal, Parkroyal Collection and Pan Pacific, closed at $10.99. It traded at $11.26 at the close of Feb 27.
