SINGAPORE: Singapore shares closed 0.81 per cent lower on Tuesday, falling for the sixth straight trading session, as gloomy forecasts for the global economy kept investors on the sidelines, dealers said.

The main Straits Times Index dropped 14.43 points to 1,761.82 on a volume of 1.02 billion shares worth S$1.08 billion (US$724 million). Losers led gainers 236 to 137, with 883 issues unchanged.

The STI has been in the decline after rising on the first two trading days of the year.

"The real direction for the Singapore market will only become clear after we've seen the Singapore Budget and (US president-elect Barack) Obama is sworn in," said a trader at foreign brokerage.

The government will unveil the national Budget on January 22 which is expected to help individuals and businesses cope with a recession. Obama will be inaugurated on January 20.

Bank shares closed mixed, with DBS up 17 cents to S$8.28, United Overseas Bank sliding 18 cents to S$12.38 and Oversea-Chinese Banking Corp ending eight cents lower at S$5.07.

Property shares also fell, with CapitaLand and Keppel Land falling seven cents each to S$2.83 and S$1.72 respectively, and City Developments closing six cents lower at S$6.00.

Singapore Telecommunications fell two cents to S$2.53 and oil rig-maker Keppel Corp dropped eight cents to S$4.40. Singapore Airlines closed 14 cents lower at S$11.20.


- AFP/so