Unease over the increasing tension between the two Koreas is keeping buyers away from the Singapore market. Decliners outnumber gainers by more than 3.5 to 1 by the end of the morning session.

The STI is down 0.8% at 3,128.37 midday vs down 0.3% at 3,163.05 earlier. If it goes below the November low of 3,118 later in the session, the next support will be 3,100.

“Everyone seems to be watching developments in the Korean peninsula. There’s no panic-selling yet but no one knows for now how things will turn out,” says a local house trader.

Shares of Singapore-listed Korean companies and those planning a dual listing in Korea are notably lower, with STX Pan Ocean (GZ9.SG) off 3.9% at $12.96, China Gaoxian Fibre (I4U.SG) off 6.0% at $0.315, Sunmart (C2J.SG) off 4.1% at $0.235, Combine Will (F4I.SG) off 4.3% at $0.335.