KOSPI triggers a buy-sidecar as it surges early; Kakao plunges 35%
27The KOSPI surged early in the session, triggering a buy-sidecar. Semiconductor stocks were strong on Micron-related positive news in premarket trading, while Kakao shares fell about 35% on news that a strike had been approved.
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27The KOSPI surged early in the session, triggering a buy-sidecar. The index broke through the 8,400 mark intraday. The exchange announced that the buy-sidecar had been activated.
Positive news about Micron in premarket trading the previous day and that day prompted buying in semiconductor stocks. Some large-cap semiconductor stocks opened higher in premarket trading. Investor buying was concentrated in the semiconductor sector.
The regular session opened at 8,242.12 and climbed more than 4% intraday, showing strong gains. By sector, semiconductors and IT were strong. Financial stocks posted relatively weak performance.
The buy-sidecar was triggered during a sharp rally, restricting individual buy orders. During its activation, large buy orders at the same price are limited. This is a temporary measure intended to ease a sudden imbalance in trading.
Over the same period, Kakao shares fell about 35% after news that the strike had been approved, and 4the won-denominated threshold was breached. Kakao shares showed high volatility after the strike vote. Company-specific issues created differentiation among stocks.
Market volatility increased as a sharp rise in the index coincided with steep falls in individual stocks. The exchange applied trading restrictions to protect investors. Volatility continued through the market close.