KOSPI plunges 3% intraday, triggering a sell-side circuit breaker; SK hynix at 196ten thousand2000won
13On the morning of the 3% plunge in the KOSPI triggered a sell-side circuit breaker on the securities market. Samsung Electronics was trading at 26ten thousand7000won, and SK hynix at 196ten thousand2000won, while many of the ETFs among the biggest decliners were single-stock leveraged products tied to SK hynix.
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13On the morning of the 3% plunge in the KOSPI triggered a sell-side circuit breaker on the securities market.
The Korea Exchange said that around 10o’clock, 34minutes and 14seconds in the morning, it suspended the effectiveness of program sell orders for 5minutes.
The trigger condition for the sell-side circuit breaker is when the KOSPI200 futures index falls by 5% or more from the reference price and that state1continues for at least minutes.
At the moment the circuit breaker was triggered, the KOSPI200 futures were trading at 1,142.16.
At the same time, the KOSPI was trading at 7,203.73. That was 272.21 points, 3.64 lower than the previous trading day.
Large-cap semiconductor stocks led the index lower. Samsung Electronics was trading down 6.32% from the previous trading day at 26ten-thousand7000 won, and SK hynix fell 10% to 196ten-thousand2000 won, pushing it below the 200ten-thousand-won level.
Among exchange-traded funds (ETFs), 10 of the biggest decliners were filled by 7 single-stock leveraged products tied to SK hynix.
This sell-side circuit breaker was triggered for the 18 time this year.
A researcher at Shinhan Securities said geopolitical events such as attacks on merchant ships in the Strait of Hormuz in Iran and U.S. airstrikes on Iran affected risk-off sentiment.