Seoul shares plunged Thursday amid concerns that a U.S. "blue wave" (a Democratic Party landslide in the midterm elections) could lead to tighter regulations on AI data centers, triggering sell-sidecars alternately on the KOSPI and KOSDAQ markets.
According to Korea Exchange, a sell-side sidecar was triggered in the KOSDAQ market at 2:27:31 p.m., suspending the validity of program selling orders for five minutes. At the time of activation, the KOSDAQ 150 futures price had fallen by 72.60 points (6.07%) from the previous trading day to 1,123.40, and the KOSDAQ 150 index had dropped by 64.40 points (5.43%) to 1,120.28.
A sell-side sidecar in the KOSDAQ is triggered when the KOSDAQ 150 futures price falls by more than 6% from the reference price and the KOSDAQ 150 index drops by more than 3% compared to the final value of the previous trading day, with both conditions persisting simultaneously for one minute.
The sell-side sidecar in the KOSDAQ market marks the 16th occurrence this year. Including buy-side triggers (19 times), it is the 35th sidecar of the year.
Earlier, Korea Exchange triggered a sell-side sidecar in the KOSPI market at 10:16 a.m. on the same day.
A sell-side sidecar in the KOSPI is a market stabilization mechanism that suspends the validity of program selling orders for five minutes when the KOSPI 200 futures price falls by more than 5% from the previous trading day and this state persists for one minute. This sidecar is the 56th in the KOSPI market this year and the 29th in the sell direction.
At 2:37 p.m., the KOSPI index was trading at 5,388.51, down 295.29 points (5.20%) from the previous day.
Samsung Electronics is trading at 201,500 won, down 7.57%. SK hynix is trading at 1,265,000 won, down 9.38%.
In addition, Samsung Electro-Mechanics (-14.62%), SK Square (-10.57%), and Samsung Electronics preferred shares (-6.23%) are also falling.
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