Singapore shares headed for biggest daily loss in three weeks

SINGAPORE (Reuters) - Singapore shares edged lower on Wednesday in tepid trading, on course for its biggest daily loss in three weeks, as uncertainty in China's policy moves gave the regional market little direction.

The benchmark Singapore Straits Times Index was down 0.4 per cent to 3,091.43 by midday, with volume just about half of its 90-day average daily turnover.

China shares were sluggish early on Wednesday as the yuan fell below the official fix for a second straight day, adding to jitters about possible policy changes at next week's annual parliamentary meetings.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.3 per cent.

Among the worst performers on the Singapore index were DBS Group Holdings and United Overseas Bank, both of which fell more than 1 per cent and were headed for their biggest daily decline in more than three weeks.

In other stocks, marine fuel trader Chemoil Energy jumped as much as 18 per cent to a one-year high of 40 cents, after the company announced that a Glencore Xstrata unit, which already owned 89 per cent stake, planned to take the company private.

Palm oil producer First Resources slipped from a 12-week high of $2.30 hit in the previous session after the company announced better-than-expected results, and was down 0.9 per cent to $2.23.

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