South Korean stocks surged Friday, triggering program buy-order suspension mechanisms — known as buy-side sidecars — in both the Kospi and Kosdaq markets.
According to Korea Exchange, the Kospi market halted program buy orders for five minutes starting at 12:54:55 p.m., triggered by a sharp move in the KOSPI 200 futures index.
At the time of activation, the KOSPI 200 futures index stood at 1,240.15, up 60.60 points, or 5.13 percent, from the previous session's closing price.
The Kospi buy-side sidecar activates when the KOSPI 200 futures price rises 5 percent or more above its reference price and holds that level for at least one minute, suspending program buy orders for five minutes.
The Kosdaq market followed shortly after, with its own buy-side sidecar activating at 1:08:48 p.m.
At activation, the Kosdaq 150 futures price stood at 1,487.40, up 84.80 points, or 6.04 percent, from the previous close. The Kosdaq 150 spot index rose 89.45 points, or 6.44 percent, to 1,476.37.
The Kosdaq buy-side sidecar activates when the Kosdaq 150 futures price climbs 6 percent or more above its reference price while the Kosdaq 150 index simultaneously rises at least 3 percent from the previous session's closing level, with both conditions sustained for one minute.
The Kospi was up around 5 percent and the Kosdaq around 6 percent on the day.
Friday's activation was the 34th sidecar trigger in the Kospi market this year and the 19th in the Kosdaq market.
Samsung Electronics and SK hynix, the top two Kospi stocks by market cap, were up roughly 6 percent and 3 percent, respectively.
Alteogen and Ecopro BM, the top two Kosdaq stocks by market cap, were rising roughly 8 percent and 9 percent, respectively.
jiyun@heraldcorp.com
