Forced liquidation of ‘Samjeonnix’ and a sharp index drop immediately after the launch of leveraged products (7month13day)
7month 13day, right after the launch of leveraged products, some investors were forcibly liquidated by 10%, and Samjeonnix shares plunged by more than 10%. On the same day, foreign and institutional selling dragged the KOSPI down by 3%, and HLB hit the daily limit down after news of an FDA request for additional data.
7month 13day, right after the launch of a leveraged product, some investors were forcibly liquidated at around 10% due to insufficient margin. As a result, the stock in question, identified in the article as Samjeonnix, fell by more than 10%.
On the same day, selling by foreign investors and institutions increased market volatility. According to the report, the KOSPI fell by 3% that day.
In individual stocks, a chain of new lows emerged in line with leveraged-linked moves. Reports said losses spread due to the leveraged structure tied to a single stock.
In the biotech sector, HLB hit the daily limit down after news that it had received an additional data request from the U.S. Food and Drug Administration (FDA) regarding rivoceranib.
In the semiconductor sector, Kiwoom Securities forecast that SK Hynix's 2quarterly operating profit would fall short of market expectations.
It was reported that the KOSDAQ recovered the 860line, supported by gains in some stocks. The movements by index were mixed.
Market participants summed up the day as one in which leveraged products and news related to clinical trials and earnings came out at the same time.