SINGAPORE, May 8, 2008 (AFP) - Singapore share prices closed down 1.77 percent Thursday following Wall Street's tumble as record-high oil prices renewed worries over inflation, dealers said.

The blue chip Straits Times Index fell 57.07 points to 3,171.88 on volume of 1.59 billion shares worth 2.06 billion Singapore dollars (1.50 billion US).

Decliners led rising issues 397 to 262 with 883 stocks unchanged.

Crude oil hit a record intraday high near 124 dollars a barrel in Asian trade on Thursday.

Higher oil prices will hurt consumption and drag on economic growth, said David Cohen, of global research house Action Economics.

"Some of the most vulnerable industries are the airlines and car makers," he said.

Westcomb Securities said Thursday's sell-down could present a buying opportunity for investors as Singapore's fundamentals remained firm. It said surges in oil prices tend to lead only to an initial panic in the market.

Banking shares slumped, with DBS Group falling 30 cents to 19.98 Singapore dollars, United Overseas Bank down 76 cents at 20.66 and Oversea-Chinese Banking Corp sliding 15 cents to 8.85.

Property heavyweights also ended lower, with CapitaLand off 12 cents at 6.58, City Developments slipping 14 cents to 11.82 and Keppel Land 14 cents lower at 5.86.

Singapore Airlines dropped 26 cents to 15.52 and Singapore Telecommunications ended 10 cents lower at 3.72.