Thanksgiving and Black Friday: Singapore Stocks That Benefit from This Festive Season

November 24, 2023

The festive season, marked by Thanksgiving and the ensuing Black Friday, ushers in a period of heightened economic activity.

While many are focused on finding the best deals, smart investors can look to the Singapore stock market for opportunities.

From bustling retail stores preparing for the holiday rush to online platforms capitalising on Black Friday sales, the dynamic Singapore market offers a range of stocks that could benefit from this seasonal surge.

We will take a closer look at how this seasonal trend might benefit some of these companies.

1. Retail boom: Sheng Siong Group Ltd (SGX: OV8) and DFI Retail Group Holdings Limited (SGX: D01)

The Thanksgiving season is synonymous with family reunions and festive meals, which often necessitates a rise in shopping for food, decorations, and gifts.

Supermarket chains and food suppliers, like Sheng Siong, often see a surge in sales during this period. Investing in these companies can be a strategic move, anticipating the seasonal spike in retail activity.

Aside from that, DFI Retail could also benefit from this festive season as consumers flock to stores for holiday and discount shopping.

DFI Retail, previously known as Dairy Farm International Holdings, is a major retail company operating in East and Southeast Asia.

Part of the Jardine Matheson Group, it runs a diverse array of retail outlets, including supermarkets, hypermarkets, convenience stores, health and beauty stores, and home furnishing stores under brands like IKEA, Giant, and 7-Eleven.

Dairy Farm International Holdings, with its diverse retail formats, is another stock that could see a boost from these twin events, as consumers flock to stores for holiday and discount shopping.

2. Travel and tourism spike: Singapore Airlines Ltd (SGX: C6L) and SATS Ltd (SGX: S58)

Thanksgiving is one of the busiest travel times of the year, as many people journey to be with loved ones or take advantage of the long weekend to vacation.

Airlines and transportation companies, such as Singapore Airlines, often experience a significant boost in passenger numbers.

The uptick in travel around Thanksgiving could boost financial performance.

Aside from Singapore Airlines, SATS Ltd, supporting airport services, might also benefit from the increased travel activity, including tourists taking advantage of Black Friday travel deals.

3. Shopping Malls and Real Estate: CapitaLand Limited (SGX: C31) and Mapletree Commercial Trust (SGX: N2IU)

The combined effect of Thanksgiving gatherings and Black Friday sales could drive significant traffic to shopping malls.

CapitaLand and Mapletree Commercial Trust, with their prime commercial properties, stand to gain from the increased retail activity and consumer spending.

4. Hospitality and Entertainment: Genting Singapore Ltd (SGX: G13) and CapitaLand Ascott Trust (SGX: HMN)

As families and tourists look for leisure activities during the long weekend, Genting Singapore Ltd, which operates a variety of entertainment and hospitality services, could see an uptick in patronage, boosted by the festive mood and holiday promotions.

Similarly, CapitaLand Ascott Trust could see an increase in bookings of its accommodations during this festive season.

Coupled with the recovery of the tourism industry, this should support earnings growth for Genting Singapore and CapitaLand Ascott Trust in the near term.

Invest like how you look for a deal during Black Friday

In conclusion, approaching investing with the same keen eye and strategy as you would when hunting for Black Friday deals can be highly rewarding.

Just as you seek out the best discounts and value for your money during sales, applying similar diligence and foresight to your investment choices can lead to substantial gains.

The festive season, with its dynamic economic shifts, presents unique opportunities in the stock market.

By carefully evaluating companies and understanding how they can benefit from the Thanksgiving and Black Friday surge, investors can make informed decisions, turning the season’s spending into a time of savvy investing and financial growth.

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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