On the 14th, the KOSDAQ index plunged nearly 5%, triggering a temporary suspension of program sell orders (sell sidecar) on the KOSDAQ market. The KOSPI also broke below the 6,500 level intraday, extending high volatility from the previous day.
According to the Korea Exchange (KRX), from 12:06:33 p.m. that day, the effectiveness of program sell orders on the KOSDAQ market was suspended for five minutes.
At the time of activation, the KOSDAQ150 futures price was 1,306.80, down 84.70 points (6.08%) from the previous closing price. The KOSDAQ150 cash index fell 86.69 points (6.25%) to 1,298.20.
A KOSDAQ sell sidecar is activated when the KOSDAQ150 futures price falls 6% or more from the reference price and the KOSDAQ150 cash index falls 3% or more from the previous trading day's close for at least one minute. It is the 20th sidecar on the KOSDAQ market this year.
As of 12:36 p.m. that day, the KOSDAQ index was at 757.69, down 41.67 points (5.21%) from the previous trading day. It slid to as low as 749.76 intraday, the lowest level of the year on an intraday basis.
Kang Jin-hyeok, a researcher at Shinhan Investment & Securities, said, "Despite the resilience of semiconductor materials, parts and equipment, the index hit a yearly low as large-cap secondary battery and bio stocks fell together."
In fact, declines are widening, centered on large-cap secondary battery and bio names. The No. 1 by market cap, Alteogen(196170), is down more than 15%, while Kolon TissueGene (-15.93%), EcoPro (-8.13%) and EcoPro BM (-7.68%) and most other top market-cap stocks are showing weakness.
The KOSPI also broke below the 6,500 level intraday.
At the same time, the KOSPI was at 6,601.94, down 204.99 points (3.01%) from the previous trading day. After opening lower, the KOSPI briefly attempted to reclaim the 7,000 level early in the session as bargain hunters stepped in, but as retail selling intensified, it turned lower again and extended losses. It even slipped to 6,448.86 intraday.
Large-cap semiconductor stocks are also continuing to weaken. Samsung Electronics fell below 250,000 won intraday, and SK hynix is seeing the 1.7 million won level come under threat. SK Square and Samsung Electro-Mechanics, categorized as related to Samsung Electronics and SK hynix, are down about 2% and 7%, respectively.