KOSPI Temporarily Triggers Selling Sidecar Due to Sharp Drop
(Seoul = Yonhap News) Reporter Lim Hwa-young – On the 1st, the KOSPI index was displayed on the status board in the dealing room of Hana Bank in Jung-gu, Seoul, as the KOSPI fell below the 5,000 mark following the weak performance of the U.S. stock market. On this day, as the KOSPI market plummeted, a program buying offer’s temporary halt (sidecar) was triggered.
(Seoul = Yonhap News) Reporter Go Eun-ji – The KOSPI fell below the 5,000 line due to the weak performance of the U.S. stock market.
As of 12:52 PM that day, the KOSPI was trading at 4,965.64, a sharp drop of 4.94% from the previous trading day.
The Korea Exchange announced at around 12:31:12 PM that day that due to the drop in the KOSPI 200 futures price, the program selling orders in the securities market would be temporarily halted for five minutes.
A KOSPI sidecar is triggered when the price of the most traded KOSPI 200 futures trading item from the previous trading day rises or falls by more than 5% and continues for one minute.