Singapore shares closed 0.48 percent lower on Tuesday, hit by a deepening conflict in Iraq and a gas dispute between Ukraine and Russia.
In Iraq, the militants from the Islamic State of Iraq and the Levant have continued to seize a large part of northern Iraq, forcing U.S. President Barack Obama to consider options for military action to support Iraq's besieged government.
Separately, tension in Ukraine also showed no sign of abating as Russia cut off gas to Ukraine on Monday in a dispute over unpaid bills that could disrupt supplies to the rest of Europe and set back hopes for peace between the former Soviet neighbors.
Investors will also wait for the U.S. Federal Reserve's monetary policy statement on Wednesday, when the U.S. central bank is expected to announce it will continue paring its bond purchase program and cut its growth projections.
The benchmark Straits Times Index dropped 15.82 points to close at 3,274.44 points. Trading volume was 1.48 billion shares worth 900 million Singapore dollars. Decliners outnumbered advancers 258 to 152, while 533 stocks closed unchanged.
Among top actives, Vallianz Holdings Limited sank 7 percent to 14.6 Singapore cents. The offshore marine services provider announced a placement of up to 230 million new ordinary shares at the placement price of 13.545 Singapore cents per share.
It has also entered separate share subscription agreements with a number of investors for 170 million shares at the same price.
TT International Limited dropped 2.9 percent to 16.7 Singapore cents. It expects to raise net proceeds of 24.8 million Singapore dollars from a proposed placement of up to 167.3 million new ordinary shares at 15.45 Singapore cents each. The price is a discount of approximately 9.9 percent from the volume-weighted average market price of 17.15 cents per share for trades done on June 13.
Koh Brothers Group Limited inched up 1.6 percent to 31 Singapore cents. It was awarded the construction contract in western part of Singapore, worth approximately 126.5 million Singapore dollars, by Kbd Westwood Private Limited, a Koh Brothers ' joint venture company. The Construction is expected to be completed by June 14, 2017. The construction project is not expected to have a material impact on the group's financial performance for the year ending December 31, 2014
Among the top gainers, United Envirotech rose 4.5 percent to 1. 405 Singapore dollars, whereas Jardine Cycle and Carriage became one of the top losers by falling 1.7 percent to 43.83 Singapore dollars. (1 U.S. dollar equals to 1.25 Singapore dollars)