The KOSPI index jumped 4%, triggering a "buy sidecar." Semiconductor stocks were strong on the back of the U.S. New York stock market closing higher the previous night.
Korea Exchange (KRX) activated a buy sidecar on the main board at 9:24 a.m. on the 5th. As a result, program trading buy quotes on the main board were halted for five minutes.
A buy sidecar on the main board is a market-stabilizing mechanism that is activated when the futures price based on the KOSPI200 rises 5% or more and stays there for one minute. At the time, the mini KOSPI200 futures were trading at 1,049.28, up 5.12% from the previous session.
This is the 22nd buy sidecar on the main board this year. In total this year, sidecars on the main board were activated 45 times, with 22 buy sidecars and 23 sell sidecars.
Semiconductor stocks were strong. Samsung Electronics and SK hynix each surged 6% and 8% intraday.