Seoul:South Korea's bourse operator activated a sell-side sidecar for the Korea Composite Stock Price Index (KOSPI) on Tuesday following a significant drop in the stock index.
According to Yonhap News Agency, program trading for KOSPI-listed shares was halted for five minutes at 948 a.m. as the index experienced a sharp decline.
The KOSPI opened 3.1 percent lower and further fell by 257.09 points, or 4.03 percent, reaching 6,127.15 by 950 a.m. This decline was influenced by investors selling semiconductor shares, including those of Samsung Electronics and SK hynix, due to negative sentiment from losses in U.S. technology stocks. The market was also cautious ahead of major corporate earnings reports and the release of U.S. inflation data.
A sell-side sidecar is initiated when the KOSPI 200 Futures Index drops by 5 percent or more for at least one minute.