In July 2017, Industrial Bank launched DLCs on the SGX, providing investment opportunities in major Asian stock indexes for investors. Over the years, the product line has expanded to include individual stocks listed in Singapore and Hong Kong, even covering US benchmark indexes such as Nasdaq 100, S&P 500, and Dow Jones.
In October last year, Industrial Bank launched a series of new US stock daily leveraged certificates (DLCs) on the Singapore Exchange (SGX) based on the "seven tech giants" (Apple, Amazon, Alphabet, Meta, Microsoft, NVIDIA, and Tesla), which is a market-first product allowing investors to access 3 times leverage for long and short investments in US stocks during Asian trading hours.
Use DLCs to gain leveraged investment in the following assets:
• The maximum 7x long/short DLC for the Hang Seng Index, Hang Seng TECH Index, Hang Seng China Enterprises Index, and MSCI Singapore Index.
• The maximum 5x long/short DLC for individual stocks in Singapore and Hong Kong.
• The maximum 7x long/short DLC for Nasdaq 100, S&P 500, and Dow Jones Industrial Average.
• "The seven giants of Technology" 3x Long/Short DLC (new product)
Advantages of Trading DLC:
Long/Short tools
DLC allows investors to go "long" and "short" on major indexes and stocks in the Singapore, Hong Kong, and USA markets, enabling opportunities to be seized in both bullish and bearish markets.
Leverage investment.
DLC amplifies your daily return of the symbol asset by a fixed leverage multiple (such as 3x, 5x, 7x) for both "long" and "short" positions...

🎯 Instead of asking how much longer Foreign Capital can sell, it’s better to ask how much Cash Local Institutions still have to support.
🎯 Everyone knows that Malaysian Stocks are continuously falling, the main reason being the continuous Sell from Foreign Capital. Currently, the proportion of Foreign Capital in Malaysian Stocks has reached a historic low.
🎯 Most of the Malaysian stocks sold by foreign investors are taken over by local Institutions, as they still have excess Cash. Therefore, when foreign investors sell Stocks, local Institutions can immediately absorb them, which is why some Stocks, especially Banks, have not experienced significant price drops.
🎯 However, this situation can only occur as long as local Institutions still have excess Cash. Once the Cash of local Institutions is depleted, they can only choose to abandon less important Stocks, meaning they will Sell off some unimportant Stocks to regain Cash and invest more in important Stocks, in order to support the prices of a few Stocks.
🎯 Therefore, those unimportant Stocks not only face selling pressure from foreign investors but also have to endure arbitrage from local Institutions. If the Bid cannot support them, it will lead to a drastic decline in stock prices. A sharp drop in stock prices in the short term will also trigger many margin calls, causing a chain reaction of further selling, and this is where the true terror of a bear market lies.
🎯 This situation happened once during the COVID era, when almost all Stocks, except for a few Blue Chips, experienced a drastic decline. However, the stock price drop at that time was due to the MCO, and after the MCO was lifted, the stock market and economy quickly rebounded...

🎯 Everyone knows that the reason for the recent decline in Malaysian stocks is due to foreign capital massively selling Malaysian stocks. This started in the second half of last year and has been continuously selling, with a more intense selling action this year, resulting in a more significant drop in Malaysian stocks this year.
🎯 BURSA divides investors into three types: foreign investors, local institutions, and retail investors. If foreign investors continue to sell, the other two must take on the buying responsibility because the stock market is a zero-sum game, meaning the number of stocks bought and sold must be the same.
🎯 The significant difference between foreign capital and local Institutions plus retail investors is that local Institutions plus retail investors generally only Hold Malaysian stocks or Cash, and rarely invest in Other investment tools or markets. In contrast, foreign capital has many choices; they can invest in Stocks from other countries if they do not invest in Malaysian stocks. This means that the Sell-off by local Institutions plus retail investors is usually short-term because they do not choose to keep Cash for long, but the withdrawal by foreign capital can be long-term since the funds can be invested elsewhere.
🎯 Therefore, if the stock market is described as a reservoir, there were originally three pipes responsible for injecting funds into the Malaysian stock market, but now one of the pipes has turned into a pump, drawing water out of the reservoir, leaving the other two pipes struggling to support.
🎯 After the foreign capital leaves, only local Institutions and retail investors remain in the Malaysian stock market, so retail investors need to be cautious. In the short term, the stock market is a zero-sum game; local Institutions cannot earn money from foreign capital and can only target retail investors. Besides buying low and selling high to make profits, local Institutions can also Short Sell.