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KRX activates sell-side sidecar for KOSPI on sharp fall

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By Yonhap
  • Published KST
Officials work at a dealing room of Hana Bank in Seoul, Tuesday. Yonhap

Officials work at a dealing room of Hana Bank in Seoul, Tuesday. Yonhap

Korea's bourse operator on Tuesday activated a sell-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) as the stock index dropped.

Program trading for the KOSPI-listed shares was suspended for five minutes at 9:48 a.m, according to the Korea Exchange (KRX).

After opening 3.1 percent lower, the KOSPI lost 257.09 points, or 4.03 percent, to 6,127.15 as of 9:50 a.m.

Investors sold off semiconductor shares, including Samsung Electronics and SK hynix, as losses in U.S. technology stocks weighed on investor sentiment ahead of major companies' earnings reports and the release of U.S. inflation data.

A sell-side sidecar is triggered when the KOSPI 200 Futures Index falls 5 percent or more for at least one minute.