AHEAD of the US Federal Reserve's July rate decision, investors in the local market exited positions in a session that saw the Straits Times Index (STI) slide 49.79 points or 1.5 per cent to end July at 3,300.75.

The STI dropped 1 per cent during the first half of the afternoon session, as did MSCI Singapore futures during that period. Dealers mostly attributed the drops to investors exiting positions to close the month out.

Singapore shares were also impacted by weak trade in Hong Kong and US President Donald Trump's dour comments on China prior to the conclusion of trade talks in Shanghai.