KOSDAQ Jumps Over 5% for Second Consecutive Day, Triggering Buy-Side Circuit Breaker… 17th Time This Year
KOSDAQ Recovers to 777… KOSPI Also Turns Higher
Institutional Investors Buy 345 Billion…Individuals and Foreign Investors Continue to Sell
Pharmaceuticals, Medical and Precision Equipment, and General Services Show Strength
[Edaily Reporter Kim Hyung-il ] The 17th “buy-side sidecar” (temporary suspension of buy orders in program trading) of the year was triggered on the KOSDAQ market. The KOSDAQ surged on the back of last night’s strong performance on the New York Stock Exchange, while the KOSPI also turned positive during the trading session.
Hana Bank’s trading room. (Photo = Yonhap News)
According to the Korea Exchange on the 4th, the KOSDAQ Market Division triggered a buy-side sidecar at 10:47 a.m. that day. This marks the second consecutive day following the previous day’s activation.
As of today, the buy-side sidecar has been triggered 17 times in the KOSDAQ market this year. Including 13 sell-side sidecar triggers, a total of 30 sidecars have been activated, marking the highest number on record since the KOSDAQ sidecar system was introduced on March 5, 2001.
The KOSDAQ 150 futures rose 6.09% from the previous day’s close of 1,262.20 to 1,339.10, while the KOSDAQ 150 Index climbed 6.5% from 1,250.79 to 1,332.12, meeting the trigger criteria. Upon activation, the execution of buy orders via program trading was suspended for five minutes.
The buy-side “sidecar” is a mechanism that suspends the validity of buy orders in program trading for five minutes if the KOSDAQ 150 futures price rises by 6% or more from the reference price and the KOSDAQ 150 Index rises by 3% or more from the previous trading day’s close, and this condition persists for one minute.
As of 10:58 a.m., the KOSDAQ is continuing its sharp rally, trading at 777.41—up 40.06 points (5.43%) from the previous trading day.
By investor type, institutions are leading the index higher with net purchases of 345 billion won. In contrast, retail investors and foreign investors are net sellers of 170.1 billion won and 170.6 billion won, respectively.
Among the top market-cap stocks, Alteogen Inc.(196170)is up 7.24%, while ABL Bio Inc.(298380)(12.96%), HLB INC.(028300)(9.55%), ECOPRO CO., LTD(086520)(6.33%), and JUSUNG ENGINEERING Co.,Ltd.(036930)(4.69%) are also rising, driving the index higher. In contrast, Rainbow Robotics(277810)is down 0.87%.
By sector, pharmaceuticals, medical and precision equipment, and general services are showing strength.
The KOSPI has also turned positive during the session. After turning positive around 10:47 a.m., the KOSPI has been extending its gains. As of 10:58 a.m., the KOSPI stands at 6,328.28, up 70.83 points (1.13%) from the previous trading day.
Overnight, U.S. stock markets closed higher across the board. On the 3rd (local time), the Dow Jones Industrial Average closed at 53,178.41 on the New York Stock Exchange (NYSE), up 693.38 points (1.32%) from the previous trading day, setting a new all-time high based on the closing price. The S&P 500 and the Nasdaq Composite rose 1.48% and 2.13%, respectively. Strong earnings reports from big tech companies, such as Amazon, bolstered investor sentiment.
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