Singapore share prices closed 1.6 percent lower Friday as investors rushed for the exit amid fears the US subprime mortgage crisis is spreading, dealers said. They said concerns over the US subprime mortgage market overshadowed local news the economy had grown a better-than-expected 8.6 percent in the second quarter, prompting the government to raise the full year growth target to 7.0-8.0 percent from 5.0-7.0 percent.
The Straits Times Index fell 53.99 points to 3,359.18, joining the global equities rout, a day after French bank BNP Paribas suspended three of its funds exposed to low quality credit in the US mortgage housing market.