After a sell-sidecar (suspending the effectiveness of sell quotes in program trading) was triggered on the main board on the 28th, a sell-sidecar was also triggered consecutively on the KOSDAQ market.
Korea Exchange (KRX) said a sell-sidecar was triggered on the main board at 9:06 a.m. It was the 42nd sidecar this year, with 22 sell-sidecars and 20 buy-sidecars triggered.
At the time, the KOSPI200 futures index was down 6.42% from the previous day at 1,001.54 points. The program trading transaction volume showed a net sell of 315.7 billion won.
A sell-sidecar on the main board is triggered when the KOSPI200 futures index falls 5% or more from the previous closing price and stays there for 1 minute.
The KOSDAQ sell-sidecar was triggered at 9:14 a.m., eight minutes after the main board sell-sidecar was triggered.
At the time of activation, the KOSDAQ150 futures index was down 6.07% from the previous day, and the KOSDAQ150 index plunged 5.92%. The program trading transaction volume showed a net sell of 26.3 billion won.
A KOSDAQ sell-sidecar is triggered when the KOSDAQ150 futures index plunges 6% or more from the previous closing price or when the cash index falls 3% and the move lasts for 1 minute.
Domestic stocks are plunging right after the open. The drop follows the successful listing of China's top DRAM maker CXMT, which sent U.S. semiconductor stocks sharply lower the previous day.
Nvidia, the leading AI chip stock, dropped 5%, ceding the world's No. 1 market capitalization spot to Apple. Nvidia was also once again embroiled in "circular financing" controversy. According to Bloomberg and others, the expense of Nvidia's 5-year credit default swaps (CDS) jumped by a record amount, a sign interpreted as heightened market caution.