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Singapore shares closed 0.26 percent lower on Monday, as investors were cautious ahead of China 's HSBC manufacturing purchasing managers' index (PMI) for September due Tuesday.
The manufacturing data of China will give additional clues about the health of the Chinese economy. Investors' hopes of aggressive policy easing were also dampened by statement from China's finance minister Lou Jiwei, who said that the central government will not change its economic plans drastically following a deterioration in industrial data.
Separately, finance ministers and central bank chiefs from the G20 economies met in the Australian city of Cairns over the weekend and said they were close to adding an extra 2 trillion U.S. dollars to the global economy and creating millions of new jobs, but Europe's extended stagnation remains a major stumbling block.
The benchmark Straits Times Index of Singapore fell 8.48 points to close at 3,296.57. Trading volume was 1.57 billion shares worth 953 million Singapore dollars (750.3 million U.S. dollars).
Decliners outnumbered advancers 280 to 162, while 495 stocks closed unchanged.
DBS Group Research said that with the third-quarter results season starting in a month's time, it expects "continued support around the 3,250 points and 3,270 points level in coming week(s) should there be another bout of profit taking."
Far East Hospitality Trust fell 0.6 percent to close at 81 Singapore cents. It entered into a joint venture agreement with Far East organization centre private Limited to participate in the development of a new 443.8 million Singapore dollar hotel project located on Sentosa.
The trust will hold a 30 percent stake, and the investment in the 30 percent stake will be fully funded by debt. The development is expected to be completed in 2018.
Keppel Land fell 0.3 percent to close at 3.47 Singapore dollars. Its subsidiary PT Keppel Land will be selling its 80 percent stake in a strata-titled retail development in Surabaya, Indonesia for approximately 42.8 million Singapore dollars.
According to Keppel Land, the sale is expected to yield an after-tax profit of about 12.5 million Singapore dollars.
Among the top gainers, Great Eastern Holdings rose 2 percent to close at 23.85 Singapore dollars, whereas Jardine Matheson became one of the top losers by falling 0.5 percent to 62.07 U.S. dollars. (1 U.S. dollar = 1.27 Singapore dollars)
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