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SINGAPORE, Nov 17, 2008 (AFP) - Singapore shares closed 0.53 per cent lower on Monday but there are signs the downward momentum has slowed and the government will take action to boost the economy, dealers said.
The blue chip Straits Times Index closed 9.47 points lower at 1,749.67 on thin volume of 767 million shares worth 638 million dollars (419 million US). Losers led gainers 237 to 152 while 935 were unchanged.
UOB Kay Hian brokerage said further downside should be limited. It cited "clear signs that the downward momentum has slowed and there is a gradual willingness to bargain hunt".
Dealers said key export data released on Monday helped pull the index down but investors have hope the government will respond to the economic slowdown.
Key exports in Singapore, which is already in recession, fell by a worse-than-forecast 15.3 percent annual drop in October, government data showed.
To help deal with the downturn and to prepare for the future, the government is bringing forward its budget from February to January, Prime Minister Lee Hsien Loong said on Sunday. The proposed budget will include measures to support growth and jobs, strengthen business competitiveness and stimulate domestic demand, he said.
His comments "may give holders of equities some lift," analysts from CIMB said.
Singapore Telecommunications was a key gainer, up 10 cents at 2.50 Singapore dollars.
Property firm City Developments rose 15 cents to 6.25 but Keppel Land was a key loser, easing 11 cents to 1.67 while CapitaLand dropped three cents to 2.69.
In the banking sector, DBS closed 24 cents lower at 10.10, but UOB rose four cents to 12.16 and OCBC eased nine cents to 4.81.
Singapore Airlines gained 14 cents to 11.28.
- Dow Jones Newswires contributed to this story -
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