Shares close 1.8% lower

SINGAPORE - Singapore shares fell 1.85 per cent on Monday on fears over the economic impact of a deadly swine flu outbreak, analysts said.

The blue-chip Straits Times Index (STI) closed 34.24 points down at 1,818.61, led by Singapore Airlines on concerns that air travel will take a further hit from the new health threat.

Volume was 1.77 billion shares worth $1.16 billion (US$774 million). Losers outnumbered gainers 427 to 125, with 700 issues unchanged.

The STI's decline was in line with other regional bourses, as fears of a worldwide swine flu outbreak dragged markets down.

'We expect uncertainty to hit the markets this week on growing concerns of the swine flu spreading and that a possible cure for this is not yet certain,' said NetResearch Asia.

'Much like SARS did in 2003, this would deal another blow to the travel and leisure industry.' Singapore Airlines dived 48 cents to $10.12 and Singapore Telecommunications eased two cents to $2.47.

Banking shares closed lower. DBS and United Overseas Bank eased six cents apiece to $8.98 and $11.12 respectively, and Oversea-Chinese Banking Corp shed 12 cents to $5.31.

Among property shares, CapitaLand fell 12 cents to $2.47, City Developments retreated 16 cents to $5.67 and Keppel Land slid five cents to $1.71.

Motor vehicle firm Jardine Cycle and Carriage fell 40 cents to $12.66 while agricultural products supplier Olam International rose five cents to $1.68.