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SINGAPORE - Singapore shares closed 3.27 per cent lower Monday on growing fears the global financial market was headed for fresh turbulence after the collapse of Lehman Brothers, dealers said.
The blue-chip Straits Times Index fell 84.12 points to 2,486.55. Volume traded totalled 922 million shares worth S$993 million, and losing shares outpaced winners 520 to 88, while 738 issues were even.
News of the collapse Monday of former Wall Street giant Lehman Brothers rocked investors' sentiments, triggering fears the turbulence swirling in the US financial sector will have a domino effect on the rest of the world, dealers said.
"The market is terrible. The best is to stay away," a local house dealer told Dow Jones Newswires.
Lehman Brothers, hit by losses from massive write-downs from the meltdown in the US sub-prime market, was forced to file for bankruptcy after it failed to find a buyer.
"Winding down of the firm may create huge volatility in the market and further losses among its counterparts in the financial system, which would deepen the credit crunch and weigh on US economic growth," said Dariusz Kowalczyk, chief investment strategist with CFC Seymour.
It was also announced on Monday that Merrill Lynch, another Wall Street titan hit by the troubled US mortgage market, would be bought by Bank of America in a deal worth 50 billion US dollars.
Singapore's three local banks closed lower, with DBS dropping 56 cents to S$16.46, United Overseas Bank down 92 cents to S$17.64 and Oversea-Chinese Banking Corp surrendering 21 cents to S$7.48.
National carrier Singapore Airlines dropped 30 cents to S$15.10, Singapore Telecommunications fell 10 cents to S$3.26 and Neptune Orient Lines was down
eight cents to S$1.87.
- AFP/ir
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