KOSPI loses 7.57 per cent as both Korean markets halt trading
South Korea’s two stock markets halted trading on 15 October for the first simultaneous circuit-breaker activation since July. The main KOSPI index closed 7.57 per cent lower, taking its seven-session decline beyond a fifth of its value. Foreign investors kept selling, and the financial regulator held an emergency market review as the selloff spread across both exchanges.
Economics & Markets··Evening
Trading stops on both exchanges
South Korea’s main stock market and its smaller-company market both halted trading on 15 October. The KOSPI and KOSDAQ activated stage-one circuit breakers after restrictions on programme selling. These were the first simultaneous circuit-breaker activations since 29 July. Programme-order restrictions and a halt covering the market are different safeguards; both were used during this session.[1], [2]
The KOSPI closed at 5,554.22, down 454.59 points or 7.57 per cent. The KOSDAQ finished at 760.82, losing 63.06 points or 7.65 per cent. Market value fell by a combined 410.899 trillion won across the two exchanges during the day. The main index had declined in every session since 6 October.[1]
The seven-session decline exceeds a fifth
From 7,003.74, the KOSPI had shed 1,449.52 points, or 20.7 per cent, over seven consecutive trading sessions. Its market value fell by 1,193.5328 trillion won across that run. Foreign investors were net sellers for an eighth consecutive session, selling a net 3.6337 trillion won on 15 October and 18.0686 trillion won across those eight sessions.[1]
Samsung Electronics, the Korean electronics and semiconductor group, lost 9.48 per cent to close at 210,000 won. SK Hynix, another semiconductor maker, fell 11.06 per cent to 1,262,000 won. Both reached their lowest closing prices since 24 April. Hwang Seung-taek, research chief at Korean brokerage Hana Securities, attributed deeper declines to weak buying support against foreign selling of large semiconductor shares.[1], [2]
Regulator holds an emergency market review
South Korea’s Financial Services Commission held an emergency market review. Its chairman, Lee Eok-won, urged caution against excessive anxiety and said prepared contingency measures would be implemented quickly if needed. Across this year, circuit breakers have activated 10 times on the KOSPI and 5 on the KOSDAQ. Lower-threshold restrictions on programme orders have activated 84 times, compared with 45 during 2008.[1], [2]
