Singapore - Singapore stocks were down by 2.3 per cent at midday on Tuesday following the collapse of US investment bank Lehman Brothers.

The benchmark Straits Times Index fell 55.99 points to 2,430.56.

Investors "are cutting heavy losses now," an analyst said. "There's no way out."

DBS Vickers said it expects the downside for the index to be at 2,340 with a worst-case scenario of 2,166. (dpa)