Lunar New Year Fuels Investor Interest in Key Sectors
As Singaporeans gear up for the Lunar New Year festivities, a palpable buzz is building within the investment community. Short-term investors are keenly observing stock groups poised to benefit from the anticipated surge in consumer spending and heightened travel demand during this festive period. Sectors such as retail, food production, and aviation are currently drawing significant attention, with expectations of robust returns driving strategic capital allocation.
The broader domestic stock market is widely forecast to continue its upward trajectory throughout the year, underpinned by a confluence of four significant factors.
Firstly, the government’s ambitious economic growth target of 10 per cent and beyond is being viewed as a potent catalyst for market expansion. This optimistic outlook signals a dynamic economic environment conducive to investment.
Secondly, market valuations present an attractive proposition. The VN-Index is presently trading at a price-to-earnings (P/E) ratio of approximately 15 times. When excluding the stocks of member units under Vietnam’s leading conglomerate, Vingroup, the forward P/E ratio is estimated to be around 14 times. This figure represents a more favourable valuation compared to the periods of 2017-2018 and 2020-2021, suggesting potential for growth.
Thirdly, there is a strong anticipation of an official upgrade in the market’s status to emerging market classification. Such an upgrade is expected to attract a larger pool of international investment capital. Furthermore, a consistent stream of supportive policy measures across various economic sectors continues to provide sustained momentum to the market.
Following these capital inflows, investors are adopting a selective approach, actively accumulating stocks with strong growth prospects. Their focus is twofold: identifying companies that stand to gain significantly from a vibrant Lunar New Year season and targeting those with attractive profit potential in the post-holiday period.
Sector Spotlight: Retail, Food, and Aviation Take Flight
Three sectors have emerged as particular standouts, commanding strong investor confidence due to their direct correlation with the festive season’s economic activity. These are the retail and consumer goods sector, the food manufacturing industry, and the aviation sector.
Retail and Consumer Goods: Riding the Wave of Festive Spending
Gains have been particularly pronounced in the retail and consumer sector. This segment is also highlighted by VPBank Securities in its February 2026 investment strategy as a recommended area for investors. The rationale is straightforward: companies within this sector directly benefit from the significant uplift in consumer demand characteristic of the Lunar New Year.
This period, often the peak season for many businesses, offers companies with extensive distribution networks a substantial advantage in achieving impressive revenue and profit growth.
Several key players have reported strong performance:
- Masan Group, a major food conglomerate, announced an after-tax profit of nearly S$270.6 million in 2025, a remarkable 1.6-fold increase year-on-year. Its revenue reached S$3.26 billion, marking an 8.7 per cent rise. For 2026, Masan has set an ambitious target of 15-20 per cent revenue growth.
- FPT Digital Retail JSC, an affiliate of the technology giant FPT Corporation, saw its consolidated revenue in 2025 climb by 27 per cent to S$2.04 billion, exceeding its annual plan by 6 per cent. The company’s pre-tax profit experienced a significant surge of 131 per cent, reaching S$48.8 million, which surpassed its planned target by 35 per cent.
- Digiworld Corporation also posted a record revenue in the past year, amounting to S$1.07 billion, a 21 per cent increase. Its after-tax profit reached S$21.9 million, representing a 24 per cent jump.
- Mobile World Investment Corporation had a particularly strong 2025, recording its highest-ever revenue of S$6.26 billion, a 16 per cent increase year-on-year.
The robust growth observed in these companies, driven by a combination of enhanced operational efficiency and the strong consumption tailwind during the Lunar New Year, is creating compelling investment opportunities within the retail stock landscape.
Food Manufacturing: Catering to Elevated Festive Palates
The food manufacturing sector is also presenting positive prospects. Demand for livestock and poultry products traditionally experiences a sharp escalation during the Lunar New Year holiday as families prepare festive meals.
Pork prices across Vietnam’s three main regions have shown an upward trend since late 2025. This price movement has contributed to an improved business performance and a more optimistic outlook for stocks associated with this sector. A prominent example is Dabaco Vietnam Group Corporation, which reported its highest-ever after-tax profit in 2025, approximating S$60.3 million, a significant 96 per cent increase compared to the previous year.
Aviation: Soaring with Increased Travel Demand
For the aviation sector, the surge in passenger travel and air cargo demand during the Lunar New Year period is the primary engine driving aviation stocks to new heights. Investors are particularly favouring stocks such as VJC, HVN, and ACV, anticipating a busy travel season.
Navigating the Future: Differentiation and Higher Standards
Nguyen Duc Quan Tung, CEO of Hanoi-based OCBS Securities JSC, commented on the market’s outlook, noting that while it possesses numerous positive anchors, the path forward will be characterised by strong differentiation and increasingly stringent standards.
“The economy is standing at the threshold of a new growth cycle, with key drivers such as public investment, the recovery of the manufacturing and export sectors, and the increasingly prominent role of the private sector,” Quan stated. “At the same time, we are witnessing a clear shift from a growth model overly dependent on bank credit towards one that is more strongly financed by the capital market.”
Quan envisions the stock market in its next phase as the “heart” of the capital allocation system, accurately reflecting the economic health and ambitions of the nation. He further elaborated that financial institutions that are well-prepared in terms of their structure, governance, and technological capabilities will enjoy long-term advantages. Conversely, growth models that are excessively reliant on cyclical factors or short-term leverage will face increasing pressure to adapt.
