Three Shares For Hari Raya Puasa

HariRayaAfter a month of fasting, it is time to celebrate the Festival of the Breaking of the Fast.

Yes, it is that time of the year that we call Hari Raya Aidilfitri. In some countries, the marking of the end of Ramadan is known as Eid Al Fitr or just simply as Eid.

Eid is one of the most important periods for many Muslims, as they return home to celebrate with family and friends. With that in mind, it is perhaps fitting to start our Hari Raya journey with ComfortDelGro (SGX: C52), which is one of Singapore’s most successful transportation companies.

ComfortDelGro, which is also one of the world’s largest land transport companies, has operations in countries that include the UK, Ireland and China. Apart from running most of Singapore’s taxis, ComfortDelGro owns 75% of bus operator SBS Transport (SGX: S61). It also has a two-third stake in vehicle-testing outfit Vicom (SGX: V01).

Since the company was formed in 2003, through the merger of Comfort Group and DelGro Corporation, ComfortDelGro has been a remarkable stock market performer. Its shares have delivered a total annual return of 16%, which means that they have quintupled over the last 11 years.

Food, as you can imagine, is another big feature of Hari Raya Puasa or the Day of Celebration. The range of delights includes sayur lodeh, ketupat, kueh and the very moreish beef rending. Eating is also a big part of our lives in Singapore, with no fewer than a dozen quoted restaurants and two listed supermarkets.

Sheng Siong (SGX: OV8), which recently posted a jump in quarterly profits, might only be Singapore’s third-largest supermarket but there is nothing third-rate about its financials. It boasts one of the highest Returns on Equity on the Singapore market.

At 26%, its RoE is some three times higher than the average return for Singapore shares. The RoE for the 30 companies that make up the Straits Times Index (SGX: ^STI) is around 8%. Sheng Siong’s exceptional RoE can be traced back to its outstanding efficiency. It generates S$2.80 for every dollar of asset employed in the business.

While food is close to all of our hearts (or should that be our stomachs), a major celebration in Singapore is never quite complete without reconnecting with old friends. So what better way to end a Hari Raya stock review than with a chinwag on the phone?

SingTel (SGX: Z74) is not just one of Singapore’s largest companies but it is also one of Singapore’s largest Shari’ah compliant stocks. Additionally, the company could offer investors, who might have an eye on geographic diversification, an opportunity to invest in as many as 25 overseas countries. These include Australia, where SingTel owns the country’s second-largest telecom operator, Optus, and India, where the company has a one-third stake in Bharti Airtel.

Whether you call it Hari Raya Aidilfitri, Eid Al Fitr or just Eid, all of us here at The Motley Fool Singapore wish all of you a joyous Hari Raya.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.