KOSPI Closes at 1771... Both Sidecar and CB Triggered in 'Record-Breaking' Crash Market

Kosdaq closes at 524... Drops to 487 for the first time in 8 years

[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] The global stock market downturn caused by the spread of the novel coronavirus infection (COVID-19) and the sharp drop in international oil prices dealt a direct blow to the domestic stock market. The KOSPI index fell to the 1600 level for the first time in 9 years, and the KOSDAQ also dropped to the 487 level for the first time in 7 years.

On the 13th, the KOSPI closed at 1771.44, down 3.43% (62.89 points) from the previous trading day. At 10:43 a.m., it dropped to 1684.93, down 8.14% from the previous day. The drop to the 1680 level was the first time in 9 years since October 2011. Accordingly, the Korea Exchange activated a sidecar, temporarily suspending program sell orders again following the previous day. This was because the KOSPI 200 futures price fell more than 5% from the previous day's closing price and sustained for one minute. The sidecar was triggered for two consecutive days for the first time in 8 years and 7 months since August 8-9, 2011.

In the securities market, foreigners net sold 1.2396 trillion won. On the other hand, individuals and foreigners net bought 443.5 billion won and 665.8 billion won, respectively.

All sectors declined. The paper and wood sector fell the most, down 8.03%. This was followed by transportation equipment (6.98%), machinery (6.89%), transportation and warehousing (6.86%), and medical precision (6.09%).

The top 10 stocks by market capitalization also all declined. Hyundai Motor had the largest drop, falling 8.21% from the previous day. This was followed by Samsung Biologics (5.49%), Samsung C&T (3.70%), LG Household & Health Care (1.72%), and Samsung Electronics (1.67%).

The KOSDAQ closed at 524.00, down 7.01% (39.49 points) from the previous day. An unprecedented crash unfolded here as well. At 9:04:01 a.m., a Level 1 circuit breaker that temporarily halts trading was triggered. This was the first time a circuit breaker was activated in the KOSDAQ market since February 12, 2016, over 4 years ago. This was because the KOSDAQ index fell more than 8% from the previous day's closing price and sustained for one minute. The circuit breaker was lifted 20 minutes later. Then, at 9:38 a.m., a sidecar was also triggered due to a sharp drop in KOSDAQ 150 futures prices and the spot index (KOSDAQ 150). At the time of activation, KOSDAQ 150 futures were down 6.47% and the spot index (KOSDAQ 150) was down 7.33%. The sidecar was lifted 5 minutes later.

At 11:08 a.m., the index fell to 487.07, down 13.56% from the previous day. The drop to the 487 level was the first time in 8 years since August 2012. However, after fluctuating, it rose to 540.17 around 2 p.m.

In the KOSDAQ market, individuals net sold 313 billion won. Foreigners and institutions net bought 172.8 billion won and 131.6 billion won, respectively.

All sectors fell. The transportation sector fell the most, down 12.19% from the previous day. This was followed by computer services (11.33%), paper and wood (11.12%), and textiles and apparel (10.73%).

Among the top 10 stocks by market capitalization, some stocks rose even in the declining market. Hugel and Pearl Abyss rose 2.57% and 1.99%, respectively. All other stocks fell. KMV had the largest drop at 6.18%, followed by Soulbrain (5.59%), HL Biopharma (3.76%), SK Materials (@.91%), and CJ ENM (2.72%).

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