SINGAPORE - Local shares capped a volatile week with a drop on Friday, after a shock move by the Swiss central bank to abandon its cap on its currency against the euro roiled markets.

The benchmark Straits Times Index fell 1.1 per cent or 38.16 points to 3,300.68.

The index of 30 blue-chip stocks was also 1.1 per cent lower from the previous Friday.

Overall, 1.54 billion shares worth $1.06 billion shares changed hands. Losers outnumbered gainers at 284 to 105.

Investors were spooked by the Swiss National Bank's announcement on Thursday that it had scrapped its 1.20 franc cap to the euro.

The news sent most other major markets in the region down on Friday.

Hong Kong shed 1 per cent, Tokyo and Seoul both retreated 1.4 per cent and Sydney lost 0.6 per cent. However, Shanghai was up 1.2 per cent.

All eyes are now on the European Central Bank, which is due to meet on Jan 22. Analysts predict that the bank will announce a major round of monetary stimulus.

Chinese growth figures for 2014 will also be released next week.