"Today Is KOSDAQ"... Even as KOSPI Falls 4%, KOSDAQ Triggers a 'Buy Sidecar' [Morning Market Update]

[Financial News] KOSPI is trading in the 6,300 range, down more than 4%, while KOSDAQ surged and even triggered a 'buy sidecar.' The move appears to have been driven by bargain hunting, led by individual and institutional investors.
As of 10:30 a.m. on the 3rd, KOSPI was trading at 6,303.34, down 292.11 points, or 4.43%. The index opened at 6,358.27, down 237.18 points, or 3.60%, from the previous session, and then widened its losses.
On the Korea Exchange Main Board, individual investors were net buyers of 242.96 billion won. Foreigners and institutions were net sellers of 160.4 billion won and 88.5 billion won, respectively.
Among the large-cap stocks, Samsung Electronics and SK hynix were down 7.52% and 4.39%, respectively. SK Square (-2.41%), LG Energy Solution (-3.81%), Samsung Biologics (-2.90%), and Samsung Life Insurance (-8.35%) also fell. Samsung Electro-Mechanics (4.20%), Hyundai Motor Company (0.64%), and KB Financial Group (0.12%) were higher.
Most sectors were lower, with textiles and apparel (-9.36%), electricity and electronics (-6.74%), manufacturing (-5.43%), insurance (-5.18%), distribution (-4.38%), and securities (-3.50%) posting the steepest declines. Entertainment and culture (2.37%), paper and wood (1.59%), medical and precision equipment (1.40%), and construction (1.17%) were higher.
By contrast, KOSDAQ was trading at 740.43, up 20.67 points, or 2.87%, at the same time. The index opened at 709.99, down 9.77 points, or 1.36%, from the previous close, but later turned higher.
As KOSDAQ rose as much as 32.24 points, or 4.48%, to 752.00 during the session, the temporary suspension of program buy orders, known as a buy sidecar, was briefly triggered at around 10:28 a.m. At the time, KOSDAQ 150 Futures were up 6.41% from the previous trading day. The KOSDAQ 150 Index was up 3.13% from the previous close.
The KOSDAQ sidecar is triggered when KOSDAQ 150 Futures rise by at least 6% from the reference price and the KOSDAQ 150 Index rises by at least 3% from the previous trading day's final level, with both conditions sustained for one minute.
After KOSPI and KOSDAQ both closed sharply higher on the 31st of last month, up 17.91% and 11.63%, respectively, the latest move appears to reflect profit-taking in KOSPI and bargain buying in KOSDAQ, led by individual and institutional investors. In KOSDAQ, individuals and institutions are buying 67.2 billion won and 51.3 billion won worth of shares, respectively. Foreign investors are selling 120.3 billion won worth.
Han Ji-young, a researcher at Kiwoom Securities, said, "Since KOSPI surged more than 17% on the 31st of last month, posting the biggest daily gain on record, there is room for temporary profit-taking and short-term cooling-off selling." She added, "It is appropriate to view KOSPI as having moved deep into oversold territory."
[email protected] Lim Sang-hyuk Reporter