Singapore share prices plunged 3.1 percent on Monday after fears of rising US interest rates sparked massive sell-offs in global markets, dealers said.
The Straits Times Index (STI) skidded to its lowest level in over four months, closing 77.29 points down at 2,416.69. Volume of shares traded totalled 1.81 billion worth 1.74 billion Singapore dollars (1.1 billion US).
Losers outpaced gainers 701 to 68 with 428 shares unchanged.
"During the noon break (here), Japan dropped by nearly 300 points so this affected the rest of the region," said a dealer at a local brokerage.
Investors were also worried that major economies like China and Japan may follow the US lead in tightening monetary policy, the dealer said, adding this could trigger a global economic slowdown.
"This is just panic selling; most likely the next level of support is at 2,400," the dealer said.
The STI has lost 243.16 points, or 9.1 percent, since reaching an all-time closing high of 2,659.85 on May 3.
UOB Kay Hian analyst K. Ajith said the market could even drop to as low as 2,390 points but he viewed such a decline as a buying opportunity.
"China-related stocks, in our opinion, are the best buys... China-related stocks were the first to correct and we think that sector would be the first to bottom out," he said.
Among the blue chips, Singapore Telecommunications was off 0.04 to 2.58, Singapore Press Holdings dropped 0.08 to 4.12, ST Engineering shed 0.05 to 2.90 and Singapore Airlines eased 0.50 to 12.90.
Banks closed lower with DBS down 0.60 to 17.30, United Overseas Bank was 0.20 lower at 15.10 and Oversea-Chinese Banking Corp off 0.10 at 6.45.
Among tech counters, Chartered Semiconductor lost 0.08 at 1.60, Creative Technology was off 0.40 at 8.80 and UTAC was down 0.08 at 0.835.
Property stock CapitaLand fell 0.36 at 4.12, City Developments lost 0.35 at 9.45 and Keppel Land eased 0.36 at 4.22.