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KRX activates buy-side sidecar for KOSPI on sharp rise

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By Yonhap
  • Published KST
The KOSPI index is displayed at a dealing room of Hana Bank in Seoul, Wednesday. Yonhap

The KOSPI index is displayed at a dealing room of Hana Bank in Seoul, Wednesday. Yonhap

Korea's bourse operator on Wednesday activated a buy-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) as the stock index sharply rose.

Program trading for the KOSPI-listed shares was suspended for five minutes at 10:51 a.m., according to the Korea Exchange (KRX).

After opening 2.05 percent higher, the KOSPI gained 247.81 points, or 4.46 percent, to 5,800.55 as of 11:02 a.m.

The index rebounded after plunging nearly 4 percent the previous session as investors weighed concerns over profitability from heavy investments in the artificial intelligence (AI) infrastructure.

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