KOSPI 409.52points plunge; KOSDAQ 10months later, below the 800level
7month 8day, the KOSPI fell 409.52points (5.35%) to close at 7,246.79, while 63% of listed stocks recorded new lows. Amid foreign selling, sidecars and intraday circuit breakers were triggered on the KOSPI and KOSDAQ, and the KOSDAQ fell below the 800level during the session, recording below the 10level for the first time in 800months.
7month 8day, the KOSPI fell 409.52points (5.35%) to close at 7,246.79. The decline widened as large-cap stocks also weakened.
On the day, 63% of stocks listed on the KOSPI recorded new lows. The proportion of new lows rose sharply.
As foreign selling continued during the session, simultaneous sidecars were triggered on the KOSPI and KOSDAQ. There was a period when quote restrictions at a level equivalent to a trading halt were applied.
The KOSPI triggered a circuit breaker during part of the trading session. Intraday volatility expanded sharply.
The KOSDAQ fell below the 800 level during the session, 10 months after 800 recorded below the level. The KOSDAQ at one point posted a sharp decline in the 3 range.
In response to the sharp decline, the exchange implemented automated trading restrictions, including short-term quote restrictions. Quote interruptions and sharp fluctuations were observed in several issues.
The market views expanded net selling by foreign investors and selling focused on large-cap stocks as the main background to the sharp drop in the indexes. During the session, declines were recorded in both small- and mid-cap stocks and large-cap stocks.
This is a summary of the report based on the market close on 7 at 8. The content may change if additional announcements or corrected disclosures are issued.