Buy-sidecar triggered as US chip rally lifts KOSPI and KOSDAQ

Buy sidecars were triggered in both the KOSPI and KOSDAQ markets. This is interpreted as being influenced by the rebound of semiconductor stocks such as AMD, Broadcom, and Micron in the U.S. stock market overnight. Simultaneous buy sidecars have been triggered in both major markets nine times this year alone, marking the 24th simultaneous sidecar of the year when combining buy and sell triggers.

The Korea Exchange announced at 9:06 a.m. on Tuesday that it had triggered a temporary suspension of program trading buy orders (buy sidecar) in the KOSPI market. At 9:10 a.m. the same day, a buy sidecar was also triggered in the KOSDAQ market.

This is the 28th buy sidecar triggered in the KOSPI market this year, and the 58th when including sell triggers. In the KOSDAQ market, it is the 20th buy sidecar, and the 37th sidecar when including sell triggers.

At the time of the sidecar trigger, the KOSPI 200 futures index stood at 821.04, up 44.78 points (5.76%) from the previous trading day. The KOSDAQ 150 futures price was 1,099.50, up 65.10 points (6.29%) from the previous trading day, while the KOSDAQ 150 cash index stood at 1,095.53, up 60.81 points (5.87%).

A sidecar is a market stabilization mechanism that suspends the validity of program trading orders for five minutes. A KOSPI sidecar is triggered when the KOSPI 200 futures price rises or falls by 5% or more from the previous day's closing price and this state persists for at least one minute. In the KOSDAQ market, a sidecar is triggered when the KOSDAQ 150 futures price rises or falls by 6% or more from the previous day's closing price and this state persists for at least one minute.

Domestic stock markets opened with gains of over 4% in the KOSPI and over 3% in the KOSDAQ, influenced by the strength of U.S. semiconductor and AI (artificial intelligence) stocks. At the time of the sidecar trigger, the KOSPI was up more than 5%, while the KOSDAQ was up more than 4%.

In particular, Samsung Electronics, a leading semiconductor stock, rose more than 5%, and SK hynix rose more than 8%, showing strong gains. Samsung Electronics reclaimed the 200,000-won range, while SK hynix reclaimed the 1,200,000-won range.

Han Ji-young, a researcher at Kiwoom Securities, said, "Today's domestic stock market is expected to rebound, driven by upside factors such as the more than 6% strength in the U.S. Philadelphia Semiconductor Index, which surged after overcoming the NVIDIA scandal, and the more than 5% spike in KOSPI 200 night futures, despite wait-and-see sentiment regarding the U.S. October CPI (consumer price index) and CoreWeave earnings."