KOSDAQ back at 'Cheon-sdaq' for first time in four years…Buy-side circuit breaker triggered amid surge

Korea Economic Daily

Summary

The KOSDAQ index broke above 1,000 points for the first time in four years, rising 3.95% early in the session.
Top market-cap names such as Alteogen, EcoPro BM, EcoPro and Rainbow Robotics surged broadly across sectors.
The rally was attributed to expectations for the government’s KOSDAQ support policies and the Democratic Party of Korea’s legislative push for a KOSDAQ 3,000 target.

Buying poured into the KOSDAQ market early on the 26th, pushing the KOSDAQ index above the 1,000-point mark for the first time in four years since 2022. The sharp rally also triggered a buy-side sidecar (temporary suspension of program buy orders).

According to the Korea Exchange, the KOSDAQ index was trading at 1,003.20 as of 10:05 a.m., up 3.95%. The index opened at 1,003.9, up 1.0%, and extended gains throughout the morning session.

Most of the top names by market cap were higher. With all stocks up among the top 40 by market cap, the benchmark’s bellwether Alteogen (up 2.84%) led the advance, while EcoPro BM (9.98%), EcoPro (12.18%), Rainbow Robotics (22.08%), ABL Bio (15.91%), Samchundang Pharm (7.08%) and Kolon TissueGene (7.76%) also posted sharp gains across sectors including biotech, batteries and robotics.

At 9:59 a.m., the KOSDAQ market’s buy-side sidecar was triggered. The mechanism blocks program trading for five minutes to stabilize the market when price swings in key futures-linked names exceed 6%.

Expectations around government policy are underpinning the KOSDAQ’s rise. The Democratic Party of Korea’s 'KOSPI 5000 Special Committee' was reported to have mentioned legislative measures to achieve a KOSDAQ 3,000 target at a closed-door luncheon with President Lee Jae-myung last week. Earlier, the government had flagged a range of support measures for the KOSDAQ, including the National Growth Fund and injections of venture capital.

Reporter Jeon Beom-jin forward@hankyung.com