Kosdaq Surges, Triggering Buy-Side Sidecar... Kosdaq 150 Futures Jump Over 6%

As the Kosdaq index surged, a temporary suspension of program buy orders (sidecar) was triggered during intraday trading on the 19th. This is the second time this year that a buy-side sidecar has been activated on the Kosdaq.

On the 19th at the dealing room of Hana Bank's headquarters in Seoul, an employee is monitoring the stock market and exchange rates. Photo by Cho Yongjun

As of 11:05 a.m. on the same day, the Kosdaq was at 1,153.28, up 47.20 points (4.27%) from the previous trading day. Foreign investors and institutions were net buyers of 413.8 billion won and 448.5 billion won, respectively.

Among large-cap stocks on the Kosdaq, Peptron (17.21%), Caregen (15.31%), Ecopro (14.56%), and Samchundang Pharm (13.83%) were posting double-digit gains. Classys (9.94%), Voronoi (9.18%), Ecopro BM (8.87%), HPSP (8.33%), and Rainbow Robotics (8.06%) were also strong.

The Korea Exchange announced that due to volatility in the Kosdaq 150 futures price and the spot index (Kosdaq 150) at around 10:41 a.m. that day, the effectiveness of program buy orders would be suspended for the next five minutes. At the time of activation, the Kosdaq 150 futures price was 2,027.20, up 120.40 points (6.31%) from the previous session's closing price. The spot Kosdaq 150 index stood at 2,021.35, up 119.39 points (6.27%).

The sidecar is a mechanism designed to prevent sharp swings in the futures market from affecting the cash market. A buy-side sidecar on the Kosdaq is triggered when the Kosdaq 150 futures rise 6% or more from the reference price and the Kosdaq 150 index rises 3% or more, with these conditions sustained for one minute.

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