Singapore retail investors make bets on dips and rallies amid Iran war, data shows

SINGAPORE – Retail investors worldwide, including in Singapore, are turning the Middle East chaos into a high-stakes game, as they bet on “buying the dip” trades and sprint for exits on the earliest rallies to cash in.

Brokers’ data showed that stocks inched higher as investors globally scooped up battered shares on dips following the Iran war, in hopes that Washington and Tehran would secure a ceasefire.

Upsides to subsequent rallies were capped, however, as these investors cashed out quickly on rebounds when the US and Iran eventually agreed on a two-week pause.

Mr Steve Sosnick, chief strategist of Interactive Brokers, told The Straits Times that over the past few weeks, he has seen customers shift from buying the dip to selling the rally as the market improved. Asia-Pacific clients, including those in Singapore, make up a significant portion of those trading US stocks via the brokerage firm.

JPMorgan’s retail investor flows data showed that US investors sold more stocks than they bought after the truce was announced.

Its analysts noted a continued shift in retail behaviour observed over the past month since the Iran war broke out: Investors were selling into rallies and taking a more defensive stance.

This was in stark contrast to the same period in 2025, when retail investors aggressively bought during market sell-offs. In 2026, they were more inclined to lock in profits.

Despite the signs of ebbing enthusiasm noted above, it would be premature to declare an end to buy-the-dip behaviour, Mr Sosnick said.

Data from trading and investing platform eToro showed that Singapore retail investors shifted their portfolios towards US technology stocks while pivoting out of retail and discretionary stocks during the first three months of 2026.

At 56 per cent, Micron Technology saw the biggest increase in holders of its stock in the first quarter, compared with the preceding quarter.

The memory chipmaker’s rapid increase in popularity reflects local investors’ positioning for sustained demand in artificial intelligence infrastructure and data storage, sectors seen as resilient amid geopolitical uncertainty, said Mr Zavier Wong, market analyst at eToro.

An artist’s impression of Micron Technology’s new high-bandwidth memory (HBM) chip plant in Singapore in 2025.

PHOTO: MICRON TECHNOLOGY

Cloud, AI-integrated tech and enterprise software also proved popular with Singaporeans seeking exposure to core business infrastructure.

Compared with the preceding quarter, Oracle saw an 18 per cent rise in holders of the stock in the first three months of 2026, while Microsoft and Broadcom each saw a 17 per cent rise, and Alphabet a 4 per cent rise. Microsoft was the only stock that moved up the ranks within the top 10 most held stocks, rising from seventh to fifth place, according to eToro data.

Cybersecurity firm CrowdStrike gained ground as investors rushed to buy the dip. Palantir Technologies, whose analytics platforms are used by defence and intelligence agencies, also saw steady growth in the number of Singapore investors holding its stock amid heightened geopolitical tensions.

Mr Wong said Micron’s stock is rising because it makes a special kind of memory chip, called HBM (high-bandwidth memory), which is essential for AI data centres or the places where all the computing for AI happens.

Demand for these chips is extremely strong, and Micron has reportedly already sold out all its supply until the end of 2026.

Investors in Singapore have noticed this trend and are buying Micron shares, along with other companies that are part of the AI infrastructure boom or that provide the equipment and components needed to build and power AI technology.

On the growing interest in Broadcom, Oracle and Microsoft, Mr Wong said these companies make the cloud systems and business software that AI technology depends on to operate.

They are not as attention-grabbing as the chipmakers, such as Nvidia or Micron, but they are equally important in building out AI capabilities, he added.

“With geopolitical uncertainty still simmering and the inflation outlook murky heading into Q2, Singapore investors are positioning into stocks they know will be needed, regardless of how the macro plays out,” he said.

Grab Holdings also notched up a 3 per cent increase in the number of holders as the Singapore-headquartered super-app continues to attract local investor interest, Mr Wong said.

Singapore investors retreated sharply from consumer-facing and retail names. Costco, Starbucks, Procter & Gamble and Walmart saw some of the steepest declines in holders in the first quarter compared with the preceding quarter.

This suggests that Singaporean investors are concerned about consumer discretionary spending and supply chain pressures in the light of geopolitical instability.

Leading the drop was Circle Internet Group, which saw a 25 per cent drop in holders.

Circle Internet Group saw a 25 per cent drop in Singapore holders over worries about consumer spending amid geopolitical instability.

PHOTO: REUTERS

The stock has seen volatility in recent months, recently surging following strong fourth-quarter 2025 results, but it has since slipped 15 per cent in the past month.

“The retreat from consumer discretionary and travel names reflects a rational read of the macro environment in the first quarter. A fair amount of this can be attributed to profit-taking. Several of these stocks had a solid run, and investors were quick to lock in gains once the macro backdrop turned less favourable,” Mr Wong said.

Singaporean investors are also recalibrating their AI-related options.

While several cloud and semiconductor companies powering AI have attracted more buying interest, two Nasdaq-listed fuel cell companies targeting the AI data centre market have lost buyers.

FuelCell Energy saw a 10 per cent drop in holders while Plug Power saw an 8 per cent decline after a prolonged period of volatility, revenue misses and legal issues.

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