The blue-chip Straits Times Index shed 9.09 points, or 0.5 per cent from the previous day, to 1,761.56 on volume of 457 million shares worth $493 million.

Gainers led losers 177 to 167 with 959 issues unchanged.

It was the worst year on record, said Westcomb Securities, but the market could rebound in January as US president-elect Barack Obama takes office, on January 20, and Singapore unveils on January 22 a budget which the government says will be expansionary.

'The market could get a boost", one trader said.

Bank shares were down. United Overseas Bank fell eight cents to 12.92 Singapore dollars, Oversea-Chinese Banking Corp dropped five cents to $4.99 and DBS shed a cent to $8.42.

Property firms gained, with CapitaLand up three cents to $3.11, City Developments rising five cents to $6.37 and Keppel Land up one cent to $1.70.

Shipping firm COSCO Corp closed down eight cents at 95 cents after posting a profit warning.

Motor vehicle firm Jardine Cycle and Carriage was also lower, dropping 18 cents to $9.50. Singapore Airlines fell eight cents to 11.26, and conglomerate Keppel Corp slid nine cents to $4.33. -- AFP