KRX activates sell-side sidecar for KOSPI on sharp decline
The benchmark KOSPI and Kosdaq indices are displayed at a dealing room of Hana Bank in Seoul, Thursday. Yonhap
Korea's bourse operator on Thursday activated a sell-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) after the index fell sharply, led by tech losses.
Program trading in KOSPI-listed shares was suspended for five minutes around 10:18 a.m., according to the Korea Exchange (KRX).
The KOSPI fell by more than 4 percent.
The decline came as foreign investors sold off artificial intelligence (AI)-related stocks, including Samsung Electronics and SK hynix, after a sharp rebound in the past two consecutive sessions amid lingering concerns over massive AI spending.
A sell-side sidecar is triggered when the KOSPI 200 Futures Index falls 5 percent or more for at least one minute.