On the news that the United States and Iran effectively agreed to a two-week truce, a buy sidecar, or temporary halt on program buy orders, was triggered in the KOSDAQ market in the early session on the 8th following the KOSPI.
Korea Exchange (KRX) said it would trigger a five-minute buy sidecar at 9:13 a.m. on the 8th due to fluctuations in KOSDAQ150 futures prices and the KOSDAQ150 index.
A KOSDAQ buy sidecar is a mechanism to halt program buy orders for five minutes to promote market stability. It applies when KOSDAQ150 futures prices and the KOSDAQ150 index rise for at least one minute by 6% or more and 3% or more, respectively, from the previous day's close.
This is the ninth activation of a sidecar, including both buy and sell, in the KOSDAQ market this year. At the time of activation, the scale of program trading transactions was 92.3 billion won.
Earlier, at 9:06 a.m. the same day in the main board, a buy sidecar was triggered as KOSPI200 futures prices stayed more than 5% above the reference price for over one minute. It was the 13th time this year, and program trading transactions then totaled 706.9 billion won.
As of 9:31 a.m., the KOSPI and KOSDAQ indexes were up 5.57% and 3.78% to 5,801.04 and 1,075.93, respectively.
It has been 13 trading days since the KOSPI index last crossed the 5,800 level intraday, on the 20th of last month (5,833.68).