4consecutive trading days of sidecar measures, KOSPI 7,700-point breakdown cools investor sentiment

10On day, KOSPI 4consecutive trading days of sell-sidecar measures were triggered. A sidecar is a system that temporarily limits sharp sell orders. The measure imposed restrictions on some trading systems.

The index fell by 3% during intraday trading and was pushed down to the 7,700-point level. Selling by foreign investors and institutions stood out. This contrasted with the net buying by individual investors.

Weakness in U.S. technology stocks and tensions in the Middle East were cited as major factors behind this sharp decline. Falls centered on semiconductors and large-cap stocks increased downward pressure on the index. Weakness in technology stocks in U.S. markets affected Asian trading.

KOSDAQ closed higher on buying interest in some stocks. By sector, flows were concentrated in growth stocks and biotechnology-related issues. Trading value was higher than usual.

Program trading and market orders increased volatility. The triggering of a sidecar changed the execution method as some program orders were restricted. Securities firms and the exchange issued related notices.

The exchange will provide updates on whether additional measures will be taken through intraday notices. Investors should check their order methods and balances in their trading accounts. They should check overseas market trends and exchange notices for the next trading day.