Identifying Potential Winners on SGX as Singaporeans Get Up to $800 in Assurance Package

December 4, 2023

As Singapore decks its halls this holiday season, the government’s Assurance Package ensures that Singaporean adults won’t just be spending their extra cash on yuletide cheer.

This thoughtful financial boost, granting up to S$800 to eligible adults, is designed to help with the rising costs of living and encourage economic activity.

As Singaporean adults will receive up to S$800 in Singapore’s Assurance Package starting from tomorrow, several stocks are poised to benefit from the increased consumer spending. Here is a look at some of the potential winners in the SGX market.

  1. Sheng Siong Group Ltd (SGX: OV8): As a leading supermarket operator, they are expected to see a surge in grocery sales. Sheng Siong stands at the forefront of this spending wave. Known for its wide selection of affordable groceries and household items, the additional cash in consumers’ pockets may lead to increased sales of both essential goods and luxury items. This boost could be reflected in their revenue, benefiting shareholders and the company’s growth trajectory.
  2. Fraser and Neave Ltd (SGX: F99): Their extensive range of food and beverage products positions them well to capitalise on increased consumer spending. Known for their beverages and dairy products, F&N could see a surge in sales as families and individuals indulge more during the festive season.
  3. Jumbo Group Ltd (SGX: 42R) and Kimly Ltd (SGX: 1D0): Popular dining and food court operators that may experience higher patronage. With more disposable income, families and individuals might opt for more frequent dining out experiences, benefiting these food industry players.
  4. ComfortDelGro Corporation Ltd (SGX: C52): The top transport company stands to benefit from more robust travel and activity within Singapore. The additional cash could lead to more robust travel within the city, potentially increasing the use of taxis and other transportation services the company offers.
  5. Genting Singapore Limited (SGX: G13) and CapitaLand Ascott Trust (SGX: HMN): Poised to gain from the uptick in tourism and staycations. Given the inflationary pressure and extra cash in hand, Singaporeans might opt for local getaways, boosting the revenues of these hospitality giants.
  6. CapitaLand Integrated Commercial Trust (SGX: C38U), Frasers Centrepoint Trust (SGX: J69U), and Starhill Global REIT (SGX: P40U): REITs with retail spaces likely to experience increased footfall and retail spending. For example, CapitaLand Integrated Commercial Trust, overseeing prime properties such as Raffles City and Tampines Mall, is poised for a surge in foot traffic and retail spending, thanks to the festive season and increased disposable income. Frasers Centrepoint Trust, with malls like Causeway Point and Northpoint City, expects a significant uptick in retail activity. Starhill Global REIT, owning luxurious properties like Wisma Atria and Ngee Ann City, will likely benefit from increased luxury retail spending.

Take advantage of the Assurance Package momentum

The Assurance Package’s injection of up to S$800 per adult in Singapore heralds a potential boon for various sectors, especially retail, food and beverage, transport, and hospitality. As these industries anticipate increased consumer spending, investors have a unique opportunity to capitalise on this trend.

Instead of solely splurging on temporary joys of the season, investors can take advantage of the Assurance Package momentum and explore these potential market winners, but do so with a balanced approach. Stay informed, consider diversification, and seek professional financial advice if necessary.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies 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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