SINGAPORE - Singapore shares were 2.03 percent lower at the close of the early session on Monday, shortly before the US government said it will protect banking giant Citigroup from "unusually large losses".

News that the government would give Citigroup 20 billion dollars from a financial rescue package approved by Congress broke just after the local bourse closed for the midday break.

The blue-chip Straits Times Index was down 33.74 points at 1,628.36. Dealers said uncertainty over Citigroup's fate had kept sentiment guarded.