KOSPI falls by 4% due to sharp drop in semiconductor stocks... Activate sell sidecar

On the 5th, KOSPI fell more than 4% due to the decline of the semiconductor 'two tops', triggering a 'selling sidecar' in the stock market.

According to the Korea Exchange on this day, at 10:16:19 a.m., the effect of the program's sell bid in the stock market was suspended for 5 minutes due to changes in the KOSPI 200 futures index.

As of the time of activation, the KOSPI 200 futures index was 843.96, 46.48 points (5.21%) lower than the closing price of the previous trading day.

The stock market selling sidecar is triggered when the KOSPI 200 futures index falls by more than 5% and lasts for one minute.

It has been about a week since the 30th of last month that the selling sidecar was activated in the KOSPI market.

As of 10:24 am, KOSPI is 5,414.82, down 4.73% from the previous day. The KOSDAQ index also plunged 4.57% to 682.30.

Domestic major stocks Samsung Electronics [005930] (-6.65%) and SK Hynix [000660] (-8.88%) started down 2% and 5%, respectively, and the decline is increasing.

This is interpreted as the result of growing concerns about strengthening regulations on the construction of artificial intelligence (AI) data centers following the US Democratic Party's landslide victory (blue wave) in the midterm elections.