Kospi falls more than 5% as chip stocks slide, triggering trading curb
In short
South Korea’s Kospi fell 5.38% to 6,041.06 at 10:09 a.m. on October 13, Newsis reported. A sell-side sidecar temporarily suspended program sell orders earlier in the morning as Samsung Electronics and SK Hynix shares declined.
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South Korea’s Kospi fell more than 5% during morning trading on October 13, with semiconductor shares declining and a sell-side sidecar activated. At 10:09 a.m., the index was down 343.18 points, or 5.38%, at 6,041.06, Newsis reported. It had traded as low as the 6,020 range during the session, extending its decline to a fifth consecutive trading day. [ 40 ]
Asia Economy reported that the effectiveness of program sell orders was suspended for five minutes from 9:47:58 a.m. Kospi 200 futures stood at 955.02 at activation, down 51.20 points, or 5.08%, from the previous close. The outlet said the sell-side sidecar is triggered when those futures fall at least 5% for one minute. Reports differ on the previous activation date: Asia Economy gives August 20, while Dong-A Ilbo and Newsis give August 19. [ 36 , 37 , 40 ]
Samsung Electronics was trading at 235,250 won, down 6.09%, and SK Hynix at 1,475,000 won, down 8.10%, at 10:09 a.m., according to Newsis. The outlet reported foreign net selling of 1.2753 trillion won, while individual and institutional investors were net buyers. The Kosdaq was down 3.34% at 820.69 at the same time. Newsis linked the early semiconductor share losses to weakness in US chip stocks, noting that the Philadelphia Semiconductor Index had fallen 2.67%. [ 27 , 40 ]
The Kospi had opened October 13 down 3.10% at 6,186.08, while the Kosdaq opened down 3.00% at 823.69. The declines followed losses on October 12, when the Kospi finished at 6,384.24, down 3.65%, and the Kosdaq closed at 849.19, down 4.83%. Newsis reported that foreign and institutional selling contributed to the October 12 decline, with Samsung Electronics and SK Hynix both falling more than 4%. [ 6 , 12 , 17 , 18 , 19 , 20 ]
Why it matters
The decline extended losses after the Kospi closed 3.65% lower on October 12. The sell-side sidecar suspended the effectiveness of program sell orders for five minutes amid the fall in Kospi 200 futures.
Key facts
- The Kospi was down 343.18 points, or 5.38%, at 6,041.06 at 10:09 a.m. on October 13. [ 40 ]
- The Kospi opened October 13 at 6,186.08, down 3.10%. [ 17 , 18 , 21 , 25 ]
- A sell-side sidecar was triggered at 9:47 a.m., temporarily suspending program sell orders. [ 36 , 37 , 40 ]
- At 10:09 a.m., Samsung Electronics was down 6.09% and SK Hynix was down 8.10%, Newsis reported. [ 40 ]
- The Kospi closed October 12 at 6,384.24, down 3.65%. [ 6 , 7 , 9 ]
- The Kosdaq closed October 12 at 849.19, down 4.83%. [ 12 , 14 ]
Confirmed by several sources
Still unclear
- The precise date of the previous sell-side sidecar differs between reports. Asia Economy gives August 20, while Dong-A Ilbo and Newsis give August 19.