KOSPI sell-sidecar triggered on sharp falls in Samsung Electronics and SK hynix
The Korea Exchange triggered a sell-sidecar in the securities market on 7month 13day at around 10o'clock 34minute. A temporary halt in program selling came after simultaneous sharp declines in Samsung Electronics and SK hynix, while geopolitical risks in the Middle East and the impact of a single-stock leveraged ETF added to volatility on the day.
The Korea Exchange triggered a sell-sidecar in the securities market on 7month 13day at around 10o'clock 34minute. Program selling was temporarily halted, affecting intraday trading flows.
This was the 18time the trigger has been activated this year.
At the time of the trigger, the KOSPI200futures index fell by 63.14points from the previous day.
The index was 1142.16reported at , and the decline was 5.23%.
Samsung Electronics fell 6.32% from the previous trading day and traded at 267,000won.
SK Hynix was down 10% and was trading at 1,962,000won.
The surge in risk-off sentiment was cited as a factor behind the sharp drop in the index, amid attacks on merchant ships in the Strait of Hormuz in the Middle East and U.S. strikes on Iran.
It was also noted that the impact of single-stock leveraged exchange-traded funds (ETFs), along with some comments about SK Hynix's ADR rally, and 2·4the view that quarterly earnings would fall short of expectations, added to the selling pressure.
The KOSPI market sell-side circuit breaker is triggered when the KOSPI 200futures index falls more than 5% from the benchmark price and stays that way for 1minutes.
Sources: 파이낸셜뉴스 증권
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