However, a smaller counter, Nordic Group (SGX:MR7
) , is gaining attention for its security angle, and is also expected to benefit from the upcycle given its exposure to mission-critical infrastructure, note the OCBC analysts.
As violence escalated in the Middle East, most investors quickly took profits and ran. The smarter move, however, might be to hold firm and trust the long game. “Fundamentals will eventually reassert themselves, barring a significant broadening out or worsening of the conflict,” say OCBC Group Research analysts Ada Lim and Chu Peng in their March 10 note.
While other stocks faced a sell-off, rightly or wrongly, those with a defence or security focus stood apart. Among local listed companies, Singapore Technologies Engineering (SGX:S63) is the clear choice to capitalise on this trend.
