South Korean stocks fall

Seoul shares ended lower on Monday as investors cashed in ahead of the first options expiration date of the year, and amid persistent jitters over the eurozone debt crisis and company earnings. "Confidence is not high ahead of the expiry of options on Thursday, with heavy programme selling weighing on the market," said Mirae Asset Securities analyst Jung Seung-jae.
"Continued concern about Europe aside, there remains the question of whether South Korean companies can effectively bounce back from what has been a very difficult fourth quarter for most." The Korea Composite Stock Price Index (KOSPI) finished down 0.9 percent at 1,826.49.
Defensives were among the biggest losers, most notably consumer staples, with tobacco maker KT&G Corp down 3.86 percent and CJ Corp, the country's largest foodmaker, falling 2.46 percent. Telecommunications counters also lagged, with leading mobile carrier SK Telecom Co Ltd down 1.82 percent and No 2 provider KT Corp off 1.63 percent.
Pharmaceuticals, widely considered to be a classic defensive play, bucked the downward trend on a day when broad falls were seen across most sectors, especially among its defensive peers. "Medipost shares have spiked ahead of expectations that its stem cell medication will receive imminent government approval, which is buoying other companies involved in stem-cell products and research," said SK Securities analyst Ha Tae Gi.
Medipost Co Ltd jumped 14.96 percent, while Ilyang Pharmaceutical Co Ltd rallied 10.28 percent on reports the company has developed the world's third and Asia's first medication for the treatment of leukemia. Ssangyong Motor Co rallied for a second straight session, up 14.89 percent after its parent Mahindra and Mahindra Ltd unveiled ambitious plans for its South Korean unit at the Delhi Auto Expo.
Bridgetec Corp, a software and technological services provider, jumped 14.96 percent on reports that Samsung Electronics Co Ltd and LG Electronics Inc will unveil new voice recognition software to compete with Apple Inc's Siri on the iPhone 4S at the upcoming Consumer Electronics Show (CES) in Las Vegas.
Foreign investors were net sellers for a third consecutive session, offloading 89.0 billion won ($76.5 million) worth of shares, while institutions bought a net 62.2 billion won worth. The KOSPI 200 index fell 1.06 percent, while the junior KOSDAQ edged up 0.26 percent.