KOSPI, KOSDAQ plunge over 8%…trading temporarily halted as circuit breakers triggered

Trading on both benchmark markets halted for 20 minutes

Fallout from the outbreak of war between the United States and Iran sent the KOSPI and KOSDAQ plunging more than 8%, triggering circuit breakers that temporarily halted trading on both markets.

According to the Korea Exchange, as of 11:22 a.m. on the 4th, the KOSPI was down 468.98 points (8.1%) from the previous session to 5,322.93. The index opened at 5,592.59, down 199.32 points (3.44%), and continued to widen its losses.

At around 9:06:02 a.m., the main board saw a “sell-sidecar” triggered due to fluctuations in KOSPI 200 futures, suspending the validity of sell quotes for five minutes. A sell-sidecar is activated when KOSPI 200 futures fall 5% or more and remain there for one minute.

As the index failed to stem the slide and extended its drop, a circuit breaker that halts trading on the main board for 20 minutes was triggered at 11:19:12 a.m. This followed the KOSPI meeting the trigger condition—declining more than 8% versus the prior day’s close and sustaining that level for one minute.

In terms of flows, foreigners are currently net sellers by KRW 1.0695 trillion. Retail and institutional investors are net buyers by KRW 584.7 billion and KRW 428.1 billion, respectively.

On the main board, heavyweight Samsung Electronics is down more than 7%. SK hynix and Hyundai Motor are sliding about 4% and in the 9% range, respectively. Top market-cap names are broadly in the red.

With fears of a wider Middle East conflict lifting global oil prices, S-Oil is the sole standout, surging 19.25%.

LIG Nex1 is also up 4.84%. The move is seen as linked to reports that Cheongung-II, a Korean-made air defense system, recently intercepted missiles launched by Iran. Still, defense names are showing divergent moves, with Korea Aerospace Industries (-14.98%), Hanwha Ocean (-14.77%), Hyundai Rotem (-12.85%) and Hanwha Aerospace (-12.08%) tumbling.

At the same time, the KOSDAQ is down 92.46 points (8.13%) to 1,045.24. It opened at 1,112.08, down 25.62 points (2.25%) from the previous day, and has continued to extend losses.

A circuit breaker was also triggered on the KOSDAQ amid the rout. Trading on the KOSDAQ was halted for 20 minutes starting at 11:16:33 a.m.

Retail investors are net sellers by KRW 422.1 billion. Foreigners and institutions are net buyers by KRW 102.4 billion and KRW 326.9 billion, respectively.

In Seoul’s FX market, the won-dollar exchange rate opened at KRW 1,479 per dollar, up KRW 12.90. In overnight trading, the won at one point breached the psychological resistance level of KRW 1,500.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol said on the sharp rise in the won-dollar rate, “We are monitoring it with vigilance and checking it daily.”

Reporter Shin Min-kyung, Hankyung.com radio@hankyung.com