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Different investors can share the same bearish view — but choose different ways to express it.
Markets don’t always move higher. You may expect Singapore equities to weaken following a strong rally, ahead of earnings season, or during periods of increased macroeconomic uncertainty.
Different investors respond to that same market view in different ways. Rather than recommending any particular product, this article introduces several products investors commonly research when they have a bearish view on the Singapore market.
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You may also be interested in reading: You Think the Singapore Market Will Keep Rising. What Are Your Options?
What Do We Mean by "The Singapore Market"?
Most of the products in this article are linked to one of two closely related indices.
The Straits Times Index (STI) tracks 30 of the largest and most liquid blue-chip companies listed on the Singapore Exchange (SGX). Representing sectors such as banking, real estate, telecommunications, industrials and consumer goods, it is Singapore’s most widely recognised equity benchmark and a widely followed indicator of the local stock market.
The MSCI Singapore Index (SiMSCI) is a free float-adjusted index designed to represent the performance of large- and mid-cap Singapore companies, covering approximately 85% of Singapore’s investable equity market capitalisation. Its methodology may include eligible Singapore companies listed both on the Singapore Exchange (SGX) and overseas exchanges. This includes overseas-listed Singapore companies such as Sea Limited and Grab Holdings, providing broader representation of the Singapore equity market.
The SiMSCI serves as the underlying benchmark for SiMSCI Futures, the SG100 CFD， 和 Phillip Nova’s Leveraged and Inverse Exchange-Traded Product, LSS/SSS.
Although constructed differently, both indices are influenced by many of the same market drivers, including:
- Monetary Authority of Singapore (MAS) policy
- Bank earnings
- REIT performance
- Regional trade
- Global macroeconomic sentiment
Different Investors Express Bearish Views Differently
Some investors seek to hedge an existing portfolio. Others simply want to understand products linked to declining markets. Some are comfortable using margin-based products. Others prefer exchange-traded instruments.
Below are several approaches investors commonly research.
Investors commonly research this when…
They have a bearish view on a specific company rather than the broader market.
Things to understand
- Requires borrowing shares
- Margin account required
- Availability depends on borrowable stock
- Losses are theoretically unlimited
- Short selling stocks not available on NOVA
Investors commonly research this when…
They want to express a bearish view on the Singapore market using futures or hedge an existing portfolio.
Things to understand
- Tracks the MSCI Singapore Index (SiMSCI)
- Uses a margin-based structure
- Contracts expire and may require rollover
- Losses may exceed the initial margin
- Requires a Customer Knowledge Assessment (CKA) on NOVA
Investors commonly research this when…
They want flexible bearish exposure to the Singapore market without futures expiry.
Things to understand
- Tracks the performance of the MSCI Singapore Index (SiMSCI)
- No contract expiry
- Margin calls and overnight financing charges may apply
- Requires a Customer Knowledge Assessment (CKA) on NOVA
Investors commonly research this when…
They have a short-term bearish view on the Singapore market and are looking for an exchange-traded product designed to deliver the inverse of the daily performance of the MSCI Singapore Index (SiMSCI).
Things to understand
- Trades on SGX like a stock
- No contract expiry
- No margin account required
- Designed around a daily investment objective, meaning returns over periods longer than one day may differ from simply applying the inverse (-1X) of SiMSCI’s cumulative return
- Classified as a Specified Investment Product (SIP)
Learn more about SSS: L&I Products Tied to the Singapore Market: LSS and SSS
Comparing the Bearish Approaches
产品 | Commonly researched by investors when… |
Singapore Stocks (short selling) | They want to express a bearish view through one or a few Singapore-listed companies. |
SiMSCI Futures | They want capital-efficient exposure to a potential decline in the broader Singapore market and are comfortable managing margin requirements and contract expiry. |
SG100 CFD | They want leveraged exposure to a potential decline in the broader Singapore market without managing futures expiry, and are comfortable trading on margin. |
SSS Inverse Product | They want an exchange-traded product designed to move opposite to the daily performance of the MSCI Singapore Index, without using a margin account. |
One Market. Different Ways to Express a Bearish View.
A bearish market outlook doesn’t automatically lead every investor to the same product.
Some products are designed around individual companies. Others provide exposure to the broader market. Some use margin-based structures, while others are exchange-traded.
Understanding these structural differences helps investors recognise how different products are designed to meet different investment objectives and market views.
You may also be interested in reading: You Think the Singapore Market Will Keep Rising. What Are Your Options?
Find Singapore stocks, STI ETF, SiMSCI futures, SG100 CFD, and SSS on NOVA, open an account today.
