Oil price spike hits STI as travel stocks slide and palm oil producers rally

Rising oil prices are impacting the Singapore stock market, with travel stocks declining and palm oil producers rallying. Read more at straitstimes.com.

SINGAPORE – Rising oil prices amid the Iran conflict continued to weigh on the Singapore stock market through the week, with the Straits Times Index (STI) falling to 4,842.27 points on March 13, down 3.1 per cent from the previous week.

Aviation and hospitality were among the sectors hit by volatile oil prices, which surged above US$100 a barrel this week.

Brent crude hit US$116 a barrel on March 9 – its highest since July 2022 – as tanker movements in the Strait of Hormuz ground to a halt, severely hurting oil supply chains. Brent crude was trading at around US$99 a barrel when markets closed in Singapore on March 13.

Shares of property developer UOL fell 4.8 per cent through the week to close at $10.30, while City Developments Limited (CDL) closed at $9.03, 1.4 per cent lower. CDL Hospitality Trusts was down 1.8 per cent at 81 cents.

Shares of companies across fuel-reliant sectors like aviation weakened, with Singapore Airlines closing the week at $6.54, 1.7 per cent lower than the previous week, while ground handler SATS closed 1.1 per cent lower at $3.61.

Oil-related stocks and offshore and marine (O&M) companies displayed resilience.