The KOSDAQ index plunged more than 4% amid concurrent selling by foreigners and institutions, triggering an intraday program-trading sell quote suspension (sell sidecar). In contrast, the KOSPI index reversed higher as bellwethers Samsung Electronics(005930) and SK hynix(000660) rebounded.
At 10:29 a.m. on the 21st, the KOSDAQ index was at 800.35, down 40.54 points (4.82%) from the previous session. After opening lower, the index continued to deepen its losses and looked precarious around the 800 level intraday. Around 10:05 a.m., as the decline widened to more than 4%, a sell sidecar was triggered for five minutes. A sell sidecar on KOSDAQ was last triggered on the 29th of last month, 16 trading days ago.
In the KOSDAQ market, foreigners and institutions are net selling about 250 billion won and about 150 billion won, respectively, driving the index lower. Individuals alone are net buying about 400 billion won, absorbing the supply.
KOSDAQ large-cap stocks are broadly lower. Bellwether Alteogen(196170) is down 6.92% from the previous day at 316,000 won. EcoPro BM(247540) (-7.27%), EcoPro (-6.13%), Rainbow Robotics (-6.26%), ABL Bio (-8.85%), Sam Chun Dang Pharm (-7.82%), SIMMTECH (-10.18%) and other bio, secondary battery and components stocks are showing sharp declines across the board.
At the same time, the KOSPI index rose 31.39 points (0.46%) to 6,883.97, reversing higher after a weak open. In the KOSPI market, individuals and institutions are net buying about 20 billion won and about 260 billion won, respectively, while foreigners are net selling about 16.4 billion won, with the sides tussling.
In the main board, rebounds in the No. 1 and No. 2 market-cap semiconductor stocks are leading the index recovery. Samsung Electronics is up 1.66% from the previous day at 275,500 won. SK hynix is surging 4.55% to 1,768,000 won. Financials such as Shinhan Financial Group (2.67%), Samsung Life Insurance (2.36%), KB Financial Group (1.88%) and Samsung C&T (1.74%) are also gaining.
Meanwhile, Hanwha Aerospace (-6.26%), Samsung Electro-Mechanics (-4.94%), LG Energy Solution (-3.49%), HD Hyundai Heavy Industries (-3.36%) and Samsung Biologics (-2.22%) remain weak.
In the securities industry, the view is that the rise in U.S. Treasury yields and the slump in consumer stocks in New York the previous day led to concentrated supply from overvalued growth stocks in the KOSDAQ market. For the KOSPI, analysts say the index is extending gains on a rebound led by semiconductor and bank stocks.