KOSPI Plunges Further After Brief Rebound Attempt; Sell-Side Sidecar Triggered

The KOSPI has fallen more than 4% during intraday trading, triggering a sell-side sidecar, as investor sentiment weakened due to a downturn in semiconductor stocks and escalating geopolitical tensions in the Middle East.

According to the Korea Exchange, as of 11:30 a.m. today (July 20), the KOSPI is trading in the 6,500 range, down more than 4.5% from the previous trading day.

The index opened at 6,643.58, down 177.02 points (2.60%) from the previous session. Although it briefly recovered to the 6,800 level, it widened its losses again, leading to the activation of a sell-side sidecar—a temporary suspension of program sell orders—at 11:21 a.m.

A sell-side sidecar in the KOSPI market is triggered when the KOSPI 200 futures index falls by 5% or more and sustains that level for one minute.

The decline appears to be driven by the drop in semiconductor stock prices on the New York Stock Exchange over the weekend, coupled with renewed concerns over a potential full-scale war between the United States and Iran.

In the KOSPI market, foreign investors and institutions are net buying 441.6 billion won and 1.7 billion won, respectively, while individual investors are net selling 441.9 billion won.

Samsung Electronics and SK Hynix, the two leading semiconductor stocks driving the KOSPI, are both down by nearly 4%.

At the same time, the KOSDAQ index is down more than 5% from the previous session, hovering in the 750 range.

The KOSDAQ index opened at 773.21, down 18.63 points (2.35%) from the previous trading day, and has since continued to widen its losses.

A sell-side sidecar was triggered for the KOSDAQ index earlier today at 10:52 a.m., preceding the KOSPI.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.