As we step into October, a month historically recognised for both its market highs and lows, investors find themselves navigating a landscape of uncertainties.
Despite the volatility in the market, Singapore’s Straits Times Index (STI) has notably remained as one of the top performers year-to-date in the region, showcasing Singapore’s robust market environment.
In this light, we look into the Top 5 Singapore Stocks to Buy in October 2023, aiming to guide investors through a market characterised by both opportunity and historic volatility.
1. Singapore Airlines
Singapore Airlines Ltd (SGX: C6L), or SIA, is Singapore’s national flag carrier with over 20 subsidiaries and offers flights to over 130 destinations globally.
Being one of the top performers among Singapore’s large-cap this year, SIA has depicted robust financial growth, exhibiting a record quarterly net profit of S$734.0 million and a notable growth of 35.6% in operating profit during Q1 2024.
Three key reasons to invest in SIA:
- Resilient recovery momentum, with passenger capacity expanding 32.4% year-on-year (yoy) and a record passenger load factor.
- Strategic positioning to leverage increasing demand in air travel.
- Substantial ranking improvement in global and regional airline indices, underlining its strengthening market presence.
2. CapitaLand Ascendas REIT
CapitaLand Ascendas REIT (SGX: A17U), also known as CLAR, is Singapore’s largest listed business space and industrial REIT.
It manages a diversified portfolio of 230 properties across five countries, specialising in Business Space, Life Science, Logistics, Industrial, and Data Centres.
Three key reasons to invest in CLAR:
- Strong financial performance with a 7.7% yoy revenue increase in H1 2023, highlighting the impact of strategic acquisitions.
- Consistent positive rental reversions and high occupancy rates indicate robust demand.
- Healthy balance sheet coupled with significant ongoing Asset Enhancement Initiatives, poised to drive portfolio returns further and enhance investor value.
3. DBS Group
DBS Group Holdings Ltd (SGX: D05) is the largest bank in Southeast Asia and a leading financial services group in Asia with a presence in 19 markets.
Three key reasons to invest in DBS:
- Robust financials, registering the highest yoy rise in both total income and net profit, with a notable 45% increase in net profit for Q2 2023, demonstrating resilience and strong revenue generation.
- Beneficiary of the higher interest rate for longer. DBS has managed to record a significant increase in Net Interest Margin (NIM), with potential for further upside.
- Attractive dividend yield of 5.7% and a competitive edge with the lowest cost-to-income ratio (CIR) at 38.3%.
4. Genting Singapore
Genting Singapore Limited (SGX: G13) is the casino operator and owner of Resorts World Sentosa (RWS), one of the largest fully integrated destination resorts in Southeast Asia.
Three key reasons to invest in Genting Singapore:
- Impressive H1 2023 earnings recovery with net profit more than doubled to S$276 million while revenue jumped to S$1.08 billion, driven by a surge in foreign visitor arrivals.
- RWS’s performance showcased recovery, particularly in the non-gaming business, contributing to increased revenues and improved attraction attendance.
- Beneficiary of the expected arrival of Chinese tourists, especially with the Golden Week in October.
5. Sembcorp Industries
Sembcorp Industries Ltd (SGX: U96) is a leading Singapore-based energy and urban solutions provider, focusing on sustainability and renewable energy, with a global portfolio including solar, wind, and energy storage.
Three key reasons to invest in Sembcorp Industries:
- Anticipation of stable net profit from Clean Energy business, owing to long-term contracts.
- Substantial growth in renewable energy profits due to both acquisitions and organic growth, and potential for refinancing to improve the cost of debt.
- The company’s diverse and balanced energy portfolio and commitment to sustainability further emphasise its investment appeal.
Final Thoughts
In the face of October’s market unpredictability, I believe these five Singapore stocks emerge as solid investment options due to their strong financial performance and strategic advantages.
These companies provide a mix of stability and growth, making them worth considering for investors.
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.
