Sidecar Triggered Early as KOSPI 200 Futures Plunge
KOSDAQ Also Drops Over 3 Percent... Presidential Election Beneficiaries Gain
Amid concerns over US-origin tariffs and economic recession, the domestic stock market also continued its sharp decline during the session on the 7th, falling more than 100 points.
As of 11 a.m. that day, the KOSPI index stood at 2362.82, down 102.60 points (4.16%) from the previous trading day. The index opened the session at 2359.25, down 106.17 points (4.31%), and at one point during the session, it fell 5.59% to the 2320 level, widening the losses.
With the KOSPI 200 futures index showing a decline of more than 5% for over a minute, a KOSPI sell-sidecar was triggered for five minutes around 9:12 a.m., marking the first such activation in eight months since last August's 'Black Monday.'
On the 7th, dealers are working in the dealing room at the Hana Bank headquarters in Jung-gu, Seoul. Photo by Yonhap News.
In the securities market, foreigners showed a net selling of 1.0363 trillion KRW, and institutions had a net selling of 235 billion KRW. Individuals were net buyers with 1.0251 trillion KRW. Foreigners are also net selling 996.8 billion KRW in the KOSPI 200 futures market.
Large-cap stocks such as Samsung Electronics (-4.28%), SK Hynix (-6.64%), Samsung Biologics (-4.58%), Hyundai Motor (-4.38%), Celltrion (-4.31%), and Kia (-3.34%) fell sharply across sectors, exerting strong downward pressure on the index.
All sectors are declining, with particularly large drops in machinery equipment (-7.06%), transportation equipment parts (-5.50%), medical precision instruments (-5.34%), transportation and warehousing (-5.13%), electrical and electronics (-4.96%), manufacturing (-4.89%), securities (-4.75%), pharmaceuticals (-4.54%), and metals (-4.78%).
At the same time, the KOSDAQ index was at 663.65, down 23.74 points (3.45%) from the previous session. The index opened at 667.02, down 20.37 points (2.96%) from the previous day, and at one point widened losses to over 4%, falling to the 650 level.
In the KOSDAQ market, foreigners and institutions are net sellers of 134.1 billion KRW and 6.7 billion KRW respectively, while individuals are net buyers of 131.3 billion KRW.
Except for ABL Bio, which hit the upper limit with a technology export contract worth over 4 trillion KRW (29.96%), most of the large-cap stocks are falling sharply. Particularly, pharmaceutical and bio stocks such as Alteogen (-4.82%), Hugel (-4.99%), Classys (-4.12%), Pharma Research (-5.66%), and Voronoi (-9.24%) are experiencing large declines.
Political theme stocks such as Sangji Construction (29.97%), Kona I (24.36%), and AhnLab (19.60%), as well as childcare and education stocks expected to benefit from the early presidential election confirmation, including Kkumbee (27.17%), Agabang Company (20.92%), and Zero to Seven (17.91%), are seeing capital inflows.
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