STI was down 0.3% at 3,003.46 points by midday

Singapore’s main index fell by midday, snapping its seven-day winning streak, on growing concerns over the lack of progress over U.S. budget woes.

At 1:09 p.m., the Straits Times Index was down 0.3% at 3,003.46 points, while the MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.5%.

U.S. stocks slid overnight after Senate Majority Leader Harry Reid expressed disappointment over the little progress in dealing with the approaching “fiscal cliff” of deep cuts in government spending and big tax increases early next year.

Commodity trader Olam International earlier tumbled as much as 6% to a three-and-a-half year low, but recouped some losses, after it launched a defence against short-seller Muddy Waters’ allegations over its accounting practices and acquisitions.

By midday, Olam shares were down 0.6% at $1.55. Jardine Matheson Holdings took the biggest hit on the STI, falling 2.2% to US$58.09 ($71.05), while property developer Hongkong Land Holdings dropped 2% to US$6.38.