As the domestic stock market plunged intraday on the 24th, "sell sidecars" were triggered one after another on the KOSPI and KOSDAQ markets. In the case of the main board, a sell sidecar was triggered for the 21st time this year alone. Combining buy and sell sidecars, it was the 41st.
With foreigners and institutions turning heavy net sellers, the KOSPI index slumped near the 6,700 level. Except for a few sectors such as biotech and defense, most sectors are falling sharply. As of 11:50 a.m., the KOSPI index was down more than 5%, breaking even the 6,700-point mark.
According to the Korea Exchange (KRX), after a sell sidecar was triggered on the main board at 11:23 a.m., a sell sidecar was also triggered on the KOSDAQ market at 11:49 a.m. As futures prices based on the KOSPI200 and KOSDAQ150 fell more than 5% for one minute, program sell quotes were temporarily halted.
On the main board, foreigners are net selling more than 2 trillion won, and institutions also have more than 1 trillion won on the sell side. In particular, the net selling scale of financial investment, where exchange-traded fund (ETF) trades are tallied, is large. Only individuals are net buying more than 3.5 trillion won. On the KOSDAQ market as well, foreigners and institutions are net selling together.
As tensions between the United States and Iran reignited and geopolitical strains intensified, international oil prices and U.S. Government Bonds yields surged, sharply dampening appetite for risk assets.
After a tanker was attacked in the Red Sea the previous day, U.S. President Donald Trump said he is considering a large-scale strike on Iran. As tensions rose, international oil prices spiked. Brent crude topped $100 a barrel, and WTI also broke $90. U.S. Government Bonds yields climbed, and U.S. stocks fell across the board.
In particular, as tech stocks such as Alphabet and Tesla plunged after earnings, domestic semiconductor shares were hit directly. Samsung Electronics and SK hynix are down more than 7%.
Meanwhile, as Middle East tensions persist, defense stocks including Hanwha Aerospace(012450) are rising, and with international oil prices up, S-Oil(010950) is also climbing. Samsung Biologics(207940), which released a surprise earnings report the previous day, is rising sharply despite the steep sell-off. Thanks to Samsung Biologics, the biotech sector is generally strong.
The KOSDAQ index is also plunging. As of 11:50 a.m., it is down around 5%, moving near the 750 level. With funds flowing into biotech, Alteogen(196170) is holding up, and HLB is rising, but semiconductor materials and equipment, Robotics, and secondary battery stocks are falling en masse.