Samjeonix's leverage forced liquidation leads to a 3% drop in KOSPI
On 7 month 13 day, the KOSPI dropped by 3% due to foreign and institutional selling and forced liquidations related to single-stock leverage. 'Samjeonix' plummeted by over 10%, and some investors experienced forced liquidations of 10%. Bio HLB recorded a lower limit due to FDA supplementary requirements.
On 7 month 13 day, the KOSPI fell by 3% due to selling by foreigners and institutions, leading to increased intraday volatility. This had a direct impact on investor sentiment.
On the same day, the single-stock leverage product 'Samjeonix' tumbled, causing some investors to face forced liquidations due to margin trading. Reports indicate that the forced liquidation ratio reached approximately 10%.
As the selling by foreign investors and institutions continued, the declines of stocks linked to Samsung Electronics-related leverage products widened. Some stocks recorded new lows.
The KOSDAQ recovered 860 line on this day. The index movement showed a contrary trend to that of the KOSPI.
HLB recorded its lower limit due to news of additional requests from the U.S. Food and Drug Administration (FDA) regarding ribociclib. The company is expected to issue further announcements.
Hanwha Investment & Securities forecasted that SK hynix's 2 quarterly operating profit would fall below market expectations. The visibility of performance in the related sector is likely to impact investment decisions.
In the stock market overall, news related to leveraged products and clinical approvals came out simultaneously, drawing investor interest to specific sectors. The market may respond to additional announcements and earnings schedule.
Some securities firms have issued advisory notices recommending to check positions based on trading results and announcements of individual companies. Future announcement schedules and institutional trading trends will be important.