Singapore shares closed 2.36 percent lower on Monday with investors wary of more grim economic news, dealers said. The blue chip Straits Times Index (STI) dropped 41.18 points to 1,705.29 on volume of 773 million shares worth 804 million Singapore dollars (530 million US). Losers outnumbered gainers 250 to 115, with 891 issues unchanged.
"We think that the market is slipping into the final despair phase of the bear market, characterised by a more gradual downward drift in stock prices on lower volume," said DBS Vickers Securities. Bank shares were lower, with United Overseas Bank sliding 34 cents to 11.54, DBS closing down 32 cents at 8.50 and Oversea-Chinese Banking Corp shedding 15 cents to 5.00. Property shares also fell. City Developments dropped 16 cents to 5.51, CapitaLand eased two cents to 2.38 and Keppel Land fell one cent to 1.39.
Singapore Telecommunications and Singapore Airlines fell 10 cents apiece to 2.56 and 11.04 respectively. Shipping firm Neptune Orient Lines gained three cents to 1.16 while property developer Yanlord Land dropped three cents to 92 cents.