The KOSDAQ market triggered a sell-side sidecar at 12:06:33 PM on the 14th after the index plunged nearly 5%, according to Korea Exchange. The circuit breaker marked the 20th sidecar activation in the Korean Stocks market this year. The sharp decline was driven by synchronized drops in major battery and bio stocks alongside continued weakness in semiconductor large-caps, with the KOSDAQ index hitting an intraday yearly low of 749.76.
Korea Exchange Activates 20th Sidecar of Year
The Korea Exchange suspended program sell orders for five minutes starting at 12:06:33 PM on the 14th. At the time of activation, KOSDAQ150 futures had fallen 84.70 points (6.08%) from the previous closing price to 1306.80. The KOSDAQ150 spot index declined 86.69 points (6.25%) to 1298.20.
A KOSDAQ sell-side sidecar activates when KOSDAQ150 futures drop 6% or more from the reference price and the KOSDAQ150 spot index falls 3% or more from the previous trading day's close for at least one minute. This represented the 20th sidecar triggered in the KOSDAQ market this year.
KOSDAQ Index Records Intraday Yearly Low at 749.76
As of 12:36 PM on the 14th, the KOSDAQ index stood at 757.69, down 41.67 points (5.21%) from the previous trading day. During the session, the index fell as low as 749.76, marking the lowest intraday level of the year.
Kang Jin-hyuk, a researcher at Shinhan Investment & Securities, stated that "despite solid performance in semiconductor materials, parts, and equipment, the index recorded a yearly low due to simultaneous declines in major battery and bio stocks."
Market capitalization leaders in the battery and bio sectors experienced significant declines. Alteogen, the largest by market cap, dropped over 15%. Other top stocks by market cap also showed weakness: Kolon TissueGene fell 15.93%, Ecopro declined 8.13%, and Ecopro BM dropped 7.68%.
KOSPI Falls Below 6500 During Trading Session
The KOSPI index also broke below the 6500 level during trading on the 14th. At 12:36 PM, the KOSPI recorded 6601.94, down 204.99 points (3.01%) from the previous trading day. After opening lower, the KOSPI briefly attempted to recover the 7000 level early in the session with bargain-hunting inflows, but reversed course and expanded losses as individual investor selling intensified. The index fell as low as 6448.86 during the session.
Major semiconductor stocks continued their weakness. Samsung Electronics dropped below 250,000 won during trading, while SK Hynix faced pressure at the 1.7 million won level. SK Square and Samsung Electro-Mechanics, classified as related stocks to SK Hynix and Samsung Electronics respectively, declined approximately 2% and 7%.
FAQ
What triggered the KOSDAQ sidecar on the 14th?
The KOSDAQ market triggered a sell-side sidecar at 12:06:33 PM on the 14th when KOSDAQ150 futures fell 6.08% to 1306.80 and the spot index declined 6.25% to 1298.20, meeting the activation conditions of a 6% futures drop and 3% spot index decline sustained for at least one minute.
How low did Korean Stocks indices fall during trading on the 14th?
The KOSDAQ index hit an intraday yearly low of 749.76, while the KOSPI dropped as low as 6448.86 during the trading session on the 14th, with both indices experiencing significant declines driven by weakness in major stocks across battery, bio, and semiconductor sectors.
