Singapore shares fall over US debt ceiling concerns

SINGAPORE stocks fell on Monday, as the United States inched closer to hitting its debt ceiling.

The benchmark Straits Times Index fell 14.46 points or 0.45 per cent to 3,165.25.

Despite hopes late last week that US politicians will cobble together a deal to avoid a first-ever debt default by the country, weekend talks yielded no results. Most investors are still hopeful that a deal will be struck by Thursday's deadline, explaining why the falls were muted.

Decliners included Jardine Matheson Holdings which fell US$1.33 or 2.37 per cent to US$54.75.

Penny stocks fell more than the blue chips, with the FTSE ST Catalist Index down by 1.21 per cent.