Singapore shares closed lower on Tuesday, tracking regional gains with soaring energy costs having a negative impact on the regional economies.

The Straits Times Index (STI), a key benchmark for the Singapore Exchange, ranged between 4,885.45 and 4,930.24 throughout the day. It ended the session at 4,885.45, down 11.81 points or 0.2% compared to Monday's close.

In economic news, Lending activity in Singapore contracted year over year in February, with total loans and advances to residents falling to SG$893.6 billion from SG$841.1 billion in the same month a year prior.

On the corporate front, shares of Rex International (SGX:5WH) plunged nearly 20% at the close as its subsidiary, Lime Petroleum, defaulted on its 2027 and 2028 bonds due to insolvency and failure to meet debt obligations.

Tianjin Pharmaceutical Da Ren Tang's (SGX:T14) shares were down nearly 2% as its profit attributable to owners fell by 4% in 2025 to 2.13 billion yuan from 2.23 billion yuan a year earlier.

Meanwhile, SIIC Environment (SGX:BHK, HKG:0807) was up nearly 3% as its controlling subsidiary, Longjiang Environmental Protection, agreed to acquire Qingdao Qing'an Technology Investment's entire stake in Qingchang Water Services for 270 million yuan.

STI down 0.2%; OUE up 3%; OCBC up 2%; SIA Engineering, Singtel, UOL, Seatrium down 1%.