Singapore Stock Market - DBS Research 2026-03-06: Buy The War Drop

• We lift STI’s end-2026 target to 5,250 (7% upside), pegged at 15.3X (+1.25 standard deviation) FY27F P/E, reflecting our +2.1% revision to FY27F earnings. The higher year-end target assumes that the current Middle East tensions will be short-lived and not lead to major market disruption.

Stock market bull run checked by unfolding Middle East war

• - Read this at SGinvestors.io -
• Past geopolitical conflicts have triggered short-term drawdowns in global equity markets. In a contained escalation scenario, declines have typically averaged 6-7% over roughly 60 days. As the situation remains highly fluid, we highlight the following observations –
  1. - Read this at SGinvestors.io -
  2. Elevated oil prices are negative for energy-intensive transport stocks (e.g., SIA, ComfortDelGro)
  3. Uncertainty around the Fed outlook and renewed inflation fears may weigh on REITS and property stocks but to a lesser extent – REITs currently trading around 5% yield are CapitaLand Integrated Commercial Trust, Frasers Centrepoint Trust, Keppel DC REIT, Keppel REIT.
  4. Technology stocks riding on AI exposure (e.g. AEM, UMS) have outperformed despite initial concern about profit taking on risk-off trades.

Sector tariff uncertainties offset lower global tariffs.

Tariff volatility has returned too.

• Read more at SGinvestors.io.

Kee Yan YEO CMT DBS Group Research | Fang Boon FOO DBS Group Research | https://www.dbs.com/insightsdirect/ 2026-03-06

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