South Korea's KOSPI Index Triggers Sell-Side Sidecar Amid Sharp Decline
Quick Look
South Korea's bourse operator, Korea Exchange (KRX), activated a sell-side sidecar for the benchmark KOSPI index on Friday, suspending program trading for five minutes, as the index sharply declined by 5.08% due to investors dumping big-cap technology shares.
AI-generated summary
Why It Matters
South Korea's KOSPI index sharply lost ground by 5.08% after a 5.42% hike the previous day, prompting the Korea Exchange to activate a sell-side sidecar.
SEOUL, June 26 (Yonhap) -- South Korea's bourse operator on Friday activated a sell-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) as the index slid sharply.
Program trading for the KOSPI was suspended for five minutes around 11:13 a.m., according to the Korea Exchange (KRX).
The KOSPI sharply lost ground as investors dumped big-cap technology shares for profit hunting after a 5.42 percent hike the previous day.
The KOSPI shed 451.39 points, or 5.08 percent, to 8,478.91 as of 11:13 a.m.
A sell-side sidecar is triggered when the KOSPI 200 Futures index decreases 5 percent or more for at least one minute.
Open Questions
- What was the specific trigger for the previous day's 5.42% hike?
- How long will the market take to recover from this decline?
