KOSDAQ Returns to 7 Years Ago... Breaks Below 500 Level (Update)

487-point collapse for the first time in 7 years since December 2013
Circuit breaker and sidecar both triggered
KOSPI also falls below 1700 points... Sidecar triggered for two consecutive days

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The KOSDAQ index fell below the 500 mark, dropping to the 480 range. This is the first time since December 2013. The global stock market downturn caused by the spread of the novel coronavirus infection (COVID-19) appears to have had an impact. The KOSPI also plunged, falling more than 8%.

As of 11:20 a.m. on the 13th, the KOSDAQ was at 495.11, down 12.14% (68.38 points) from the previous session. Around 11:08 a.m., it dropped to 487.11, down 13.56% from the previous session. The drop to the 487 level is the first in seven years since December 2013.

At 9:04:01 a.m., a Level 1 circuit breaker, which temporarily halts trading, was triggered. This is the first time a circuit breaker has been activated in the KOSDAQ market since February 12, 2016, over four years ago.

The Korea Exchange explained, "Since the KOSDAQ index fell more than 8% compared to the previous day's closing price and sustained this for one minute, trading in the KOSDAQ market will be suspended for the next 20 minutes." At 9:04 a.m., the KOSDAQ was at 516.20, down 8.39% (47.29 points) from the previous trading day. This circuit breaker was lifted at 9:24:01 a.m.

Subsequently, at 9:38:34 a.m., a sidecar, which temporarily suspends program sell orders, was also triggered. This was due to a sharp drop in the KOSDAQ 150 futures price and the spot index (KOSDAQ 150). At the time of activation, the KOSDAQ 150 futures were down 6.47% and the spot index (KOSDAQ 150) was down 7.33% compared to the previous day.

Meanwhile, the KOSPI index is also experiencing a sharp decline. At the same time, it recorded 1,691.20, down 7.80% (143.13 points) from the previous session. In the KOSPI market, a sidecar was triggered again following the previous day. This was because the KOSPI 200 futures price fell more than 5% compared to the previous closing price and sustained this for one minute. The consecutive activation of sidecars for two days is the first time in eight years and seven months since August 8-9, 2011.

This content was produced with the assistance of AI translation services.