‘Even the 5,000 mark has been breached’ ... Circuit breaker triggered as KOSPI plunges in the 8% range, leaving investors stunned

[Financial News] The domestic stock market tumbled from the moment it opened on the 6th, heightening investor anxiety. After falling more than 5% the previous day, the KOSPI plunged in the 8% range again, slipping to the 4,900 level. A circuit breaker was triggered in the KOSPI Market just three minutes after opening, while a sell-sidecar was activated in the KOSDAQ Market. Even Samsung Electronics and SK hynix posted losses around the double-digit mark, adding to the strain on investors waiting for a rebound.
As of 9:30 a.m. on the 6th, the KOSPI was trading at 4,923.47, down 460.33 points (8.55%) from the previous trading day. The index opened at 5,263.26, down 2.24% from the previous session, then quickly deepened its losses, falling as low as 4,911.28 during the session.
The Korea Exchange triggered a Level 1 circuit breaker in the KOSPI Market at 9:03 a.m. At the time, the KOSPI stood at 4,924.61, down 459.19 points (8.52%) from the previous day’s close of 5,383.80. It was the 11th activation this year and the 17th on record.
Selling also flooded the market for semiconductor stocks among the companies with the largest market capitalizations. At the same time, Samsung Electronics was trading at 181,400 won, down 9.98% from the previous trading day. SK hynix stood at 1,115,000 won, down 11.79%. During the session, the stocks fell as low as 175,300 won and 1.07 million won, respectively.
The two stocks had also fallen the previous day, by 7.57% and 9.60%, respectively. With steep losses continuing for a second straight day, even investors in the large-cap stocks that represent the domestic market are finding it difficult to avoid the shock of the plunge.
The KOSDAQ Market also plunged. The KOSDAQ Index was at 632.75, down 45.66 points (6.73%) from the previous trading day. The index opened at 654.43 and fell as low as 629.17 during the session, setting a new 52-week low.
At 9:06 a.m., a sell-sidecar was triggered in the KOSDAQ Market, temporarily suspending the effectiveness of sell orders for program trading. The measure was activated after the nearest-month KOSDAQ 150 futures contract fell 6% or more from the previous day and the KOSDAQ 150 Index remained down 3% or more for one minute. This was the 36th sidecar activation in the KOSDAQ Market this year: 19 buy-sidecars and 17 sell-sidecars.
The downturn spread beyond some large-cap stocks to the market as a whole. Based on trading screens early in the session, 827 stocks fell in the KOSPI Market, while just 36 rose, including two limit-up stocks. In the KOSDAQ Market, 1,601 stocks fell, while only 93 rose, including two limit-up stocks.
The sharp overnight decline in U.S. technology stocks and the spread of risk aversion appear to have weighed on the domestic stock market as well.
Jeong Hee-chan, a researcher at Samsung Futures, explained, “The fallout from a blue wave in the U.S. midterm elections heightened concerns about tighter regulation of data centers, prompting outflows from technology stocks. With trading volume surging just after the regular session opened, large sell orders from CTA-driven algorithmic trading appear to have hit the market, and panic selling spread across the market.”

[email protected] Choi Doo-seon Reporter