5 Top Singapore Stocks to Buy in October 2023

October 2, 2023

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.

Billy Toh

Billy is passionate about the capital market and believes in investing for the long haul. Prior to this, he was an economist at RHB Investment Bank, covering Thailand and Philippines market. He also worked as a financial journalist at The Edge Malaysia and has experience working with an asset management firm. Aside from the capital market, Billy loves a good conversation over a cup of coffee, is a fitness enthusiast and a tech geek.

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