Singapore shares closed 0.28 percent lower on Wednesday as investors dumped blue chips amid concerns that U.S. Federal Reserve may hike rate as early as next month.

The growing prospects of an early rate hike lifted U.S. dollar against many major currencies. Investors were waiting anxiously for the U.S. job report due this Friday for clues of possible rate hike either next month or later this year.

If the August employment data on Friday turn out stronger than market expectation, investors fear a rate hike as early as at the Federal Reserve's next policy meeting on Sept. 21.

Singapore's benchmark Straits Times Index fell 7.8 points to 2,820.59 points. Trading volume was 877 million shares worth 925 million Singapore dollars. Decliners outnumbered advancers 195 to 168, while 545 stocks did not move.

CapitaLand closed flat at 3.07 Singapore dollars. Its wholly-owned shopping mall business, CapitaLand Mall Asia Limited, has signed a management contract with Chinese state-owned developer Changsha Pilot Investment Holdings Group to manage the retail component of the landmark Fortune Finance Center in Changsha, the provincial capital of Hunan in Central China.

Changsha Pilot Investment is the owner and developer of Fortune Finance Center, covers asset planning, pre-opening and retail management for a total gross floor area of 95,000 square meters excluding car park. Currently under construction, the mall is targeted to commence operations in end 2018. The management contract marks the beginning of CapitaLand's enhanced asset-light strategy to enlarge its mall network through third-party management contracts to complement its core strategy of developing, owning and managing malls.

Among the top gainers, Jardine Cycle and Carriage rose 1.7 percent to 42.50 Singapore dollars, whereas Jardine Matheson became one of the top losers by falling 0.8 percent to 59.85 U.S. dollars. (1 U.S. dollar equals to 1.36 Singapore dollars)

Source : XINHUA