KOSPI plunges on Meta earnings shock 7.89% and sell-sidecar triggered
7 month 2 day, KOSPI plunged by 7.89%, triggering a sell-sidecar, and the index fell 655.32 points to close at 7,648.09. The following day, 7 month 3 day, institutions made net purchases of 1.7 trillion won, helping KOSPI recover the 7,800 level, while buying by retail investors and super-investors in SK Hynix and Square was confirmed.
Following Meta's earnings shock, on 7 month 2 day, KOSPI plunged by 7.89%, triggering a sell-sidecar. This means that immediate restrictions were imposed on investor trading.
The index fell by 655.32 points on the same day, closing the session at 7,648.09. The scale of the decline was unusual for the domestic stock market.
A sell-sidecar was also triggered on the same day in KOSDAQ. Trading restrictions were temporarily applied in the KOSDAQ market as well.
SK hynix 7month 2during the session, fell sharply 14% lower. Sharp declines centered on individual large-cap stocks were confirmed.
7month 3in the session, a rebound emerged. The KOSPI recovered the 7,800level, and institutions made net purchases of 1.7trillion won, bringing in buying demand.
By sector, semiconductors led the shift to strength. Buying demand concentrated in semiconductor-related stocks amid the rebound.
Some individual investors and those known as “super-investors” were reported to have concentrated their purchases of 7month 3on SK hynix and Square. Expectations for the effect of an ADR listing were cited as the backdrop to these purchases.
In summary, 7month 2saw trading restriction mechanisms activated after a large-scale plunge, followed by a partial recovery in the index as a result of institutional buying and some individual buying on the next trading day.