Personal stocks 1,400won in forced liquidation and HLB group stocks hit the intraday limit down
7month 10day, about 1,400billion won in stocks held by individual investors was forcibly liquidated in the domestic stock market, and HLB 7month 9day, after the FDA disclosed a request for supplementary information, 7month 10day, the group stocks fell sharply together as HLB hit the intraday limit down. As volatility increased, trading restrictions continued for some stocks.
7month 10day, about 1,400billion won worth of stocks held by individual investors in the domestic stock market were forcibly liquidated in one day, spreading market volatility. The scale of the forced liquidation that day was reported to be the result of automatic sell orders being triggered in individual accounts due to insufficient collateral.
On the same day, sharp rises and falls were repeated on both the KOSPI and the KOSDAQ, and some stocks were temporarily suspended from trading. As investor orders piled up, intraday volatility grew even larger.
HLB disclosed that on 7month 9day, the U.S. Food and Drug Administration (FDA) had requested supplementary data on its liver cancer treatment candidate. After this disclosure, 7month 10day, HLB and affiliated company stocks hit the intraday limit down.
Stocks related to the HLB group all hit the daily lower limit, and trading in those stocks was restricted. Reports said that some investors received additional margin calls due to the sharp intraday drop.
In the market, it is confirmed that forced liquidations and the HLB issue occurred at the same time, widening selling pressure on the day. Due to trading restrictions by securities firms and exchanges, some trades were delayed or suspended.
HLB filed a disclosure regarding the FDA's request for supplementation, and the company's further disclosures are being watched closely. Investors need to check the related disclosures and the status of account collateral.