Be Swift to Catch the Trend: Our Taylor-made Singapore Stock Picks 

March 5, 2024

Investors take note: As the excitement of Taylor Swift’s ‘Eras Tour’ sweeps through Singapore, it presents a unique opportunity to look at Singapore stocks poised to gain from the heightened tourist activity.  

Much like Swift’s enthralling performances and dynamic musical style captivate her audience, promising stocks stand to benefit from the influx of visitors. Whether you’re a fan enjoying her chart-topping ‘Blank Space’ or getting down to ‘Shake It Off’, now is the time to fine-tune your investment portfolio and ride the wave of opportunity together.  

Here’s a look at seven stocks that could benefit from the influx of fans and tourists.  

  1. CapitaLand Ascott Trust (SGX: HMN): As legions of Swifties flock to Singapore, the demand for accommodation is set to spike. Prices for hotels have increased this week amidst the spike in demand. With its vast portfolio of serviced residences and hotels, CapitaLand Ascott Trust is well-positioned to capture this surge in demand, potentially leading to higher occupancy rates and a robust short-term income stream.
  2. Far East Hospitality Trust (SGX: Q5T): This REIT’s collection of hotels and serviced residences stands to gain from increased tourist numbers, translating to fuller rooms and enriched service demand. Additionally, the concert-driven economic uptick could bolster its compelling dividend yield.
  3. Singapore Telecommunications Ltd (Singtel) (SGX: Z74): The social media buzz and streaming of concert highlights will likely escalate data usage among attendees. Singtel could see a spike in data consumption and perhaps an uptick in tourists opting for local mobile packages, enhancing revenue during the tour period.
  4. ComfortDelGro Corporation Limited (SGX: C52): With an expected increase in the number of visitors needing transportation, ComfortDelGro may experience higher demand for taxi services, especially for travel to concert venues and late-night rides post-event.
  5. Genting Singapore Limited (SGX: G13): Resorts World Sentosa could become a hub for tourists seeking luxury stays and entertainment after the concert action. As these tourists extend their stays in Singapore, this could translate into increased patronage at the resort’s hotels, restaurants, and leisure facilities, contributing positively to Genting Singapore’s revenue.
  6. Jumbo Group (SGX: 42R): As a culinary landmark with its signature chilli crab and a portfolio of popular F&B brands, Jumbo Group will likely attract concert-goers eager to experience Singapore’s famed dining scene. The festive atmosphere and increased tourist footfall provide an opportunity for Jumbo to boost its sales significantly.
  7. CapitaLand Integrated Commercial Trust (SGX: C38U): With Taylor Swift’s concert bringing more visitors to Singapore’s core shopping areas, CICT’s malls may witness heightened traffic, potentially driving up tenant sales and benefitting from the positive atmosphere in rental reversions and retention rates.  

The phenomenon of ‘Swiftonomics’ – the economic uplift associated with Taylor Swift’s ‘Eras Tour’ – is anticipated to ripple through Singapore’s market, potentially injecting up to SGD 500 million into the local economy. With Singapore being Swift’s sole stop in Southeast Asia, regional discontent has surfaced, as neighboring countries grapple with missed opportunities to host the star and attract tourism dollars. However, for SGX investors, the unique position of Singapore is a boon.  

Companies within the hospitality, telecommunications, transport, and entertainment sectors, such as CapitaLand Ascott Trust, Far East Hospitality Trust, Singtel, ComfortDelGro, Genting Singapore, Jumbo Group, and CapitaLand Integrated Commercial Trust, are poised to benefit from this exclusive event, which could contribute significantly to the country’s GDP for the quarter. This aligns with a broader strategic push to position Singapore as an essential stop for global events, akin to Las Vegas, ensuring long-term, sustainable growth for the city-state and its investors. 

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of the company mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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