Singapore shares closed 0.07 percent lower on Monday, as market turnover was muted with many investors sidelined in a holiday-shortened week.

U.S. markets rose last Thursday despite the U.S. President Donald Trump's warning that he might reject the 900 billion U.S. dollar relief and 1.4 trillion U.S. dollar government funding bills. Trump on Sunday night signed the government spending and COVID-19 relief package into law, averting a government shutdown and delivering aid to individuals and businesses as the pandemic worsens.

Meanwhile, crude oil prices fell in Asia amid alarms over a new highly infectious variant of the coronavirus that has been raging in the south-east of England and was confirmed in many other countries.

MayBank-Kim Eng Retail Research said, "Technically, the Straits Times Index is likely to be range-bound through to the end of the year with near term support at 2,793 points and overhead resistance at the 2,892 points and 2,900 points band."

Singapore's benchmark Straits Times Index inched down 1.9 points to 2,840.14 points. Trading volume was 1.46 billion shares worth 740.39 million Singapore dollars. Decliners outnumbered advancers 231 to 207.

First REIT sank 34.57 percent to 26.5 Singapore cents. It proposed restructuring of its master lease agreements of its Indonesian hospital assets, along with a 98-for-100 rights issue at 20 Singapore cents to raise 158.2 million Singapore dollars. The rights proceeds, together with new bank facilities of up to 260 million Singapore dollars, will allow it to refinance its existing 400 million loan facilities, including the 196.6 million Singapore dollar repayment due on March next year, thus meeting its debt covenants and avoid an imminent default of 39.8 percent of its total debt.

Among top gainers, City Development Limited rose 0.75 percent to 8.04 Singapore dollars, while Jardine Matheson became one of the top losers by falling 0.31 percent to 55.35 U.S. dollars. (1 U.S. dollar equals 1.33 Singapore dollars)