KOSPI 8% plunge triggers circuit breakers and a sell-sidecar simultaneously
7Month 7day, KOSPI plunged by around 8%, triggering a circuit breaker, while a sell-sidecar was also activated, restricting intraday trading. This year, the circuit breaker has been triggered for the 6th time, and the sell-sidecar for the 16th time. Samsung Electronics announced its earnings, but failed to prevent the index from falling.
7Month 7day, KOSPI plunged by around 8%, triggering a circuit breaker and temporarily halting the market. Unlike before, investors faced restrictions on intraday trading.
During the same session, the index reached a decline of around 5%, triggering a sell-sidecar as well and restricting program trading. As a result, automatic sell orders were temporarily suppressed.
The circuit breaker was triggered for the 6th time this year, while the sell-sidecar was triggered for the 16th time. A series of triggering incidents continues in the domestic stock market.
At the beginning of the session, Samsung Electronics announced record-breaking results, but this failed to prevent the index from falling. The divergence between individual company disclosures and the index trend characterized the session that day.
The regular session opened 132.13points lower 7,919.20was recorded. The range of fluctuations widened considerably as the market plunged during the session.
Market participants said that the timing of the resumption of trading and additional disclosures should be closely watched. Checking disclosures by company became important.
The situation in the market that day can be understood more accurately by checking whether the Korea Exchange lifts the trading suspension and whether individual companies make additional disclosures.