Singapore shares were lower at midday following two day of gains, easing on growing fears over Spain's banking and fiscal problems and on indications that China may take a cautious approach to further economic stimulus.

The benchmark Straits Times Index was down 0.3 percent at 2,793.49, though above an intraday low of 2,779.31.

DBS Vickers, which sees support for the STI at 2,780, said equities are oversold and may see a short-term bounce triggered by short-covering ahead of the Greece election on June 17.

Commodity firm Noble Group Ltd bucked the trend to rise 1.8 percent to S$1.135, on a favourable earnings outlook and a sharp fall in its share price that has pushed the stock to an attractive level on a technical basis.

Noble shares have fallen about 18 percent since the start of April, compared with a 7 percent fall for the STI in the same period.

"Some foreign houses are adding long positions for Noble as their shares look oversold at current levels," said a local broker.

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1236 (0436 GMT)

(Reporting by Charmian Kok in Singapore; charmian.kok@thomsonreuters.com)