The KOSPI slumped more than 8 percent on July 28, triggering a Level 1 circuit breaker on the Korea Securities Market. It was the eighth activation this year and the 14th on record.
The Korea Exchange said it triggered a Level 1 circuit breaker at 10:13 a.m. after the KOSPI fell 542.24 points, or 8.02 percent, to 6,213.51 from the previous session’s close of 6,755.75.
A Level 1 circuit breaker is triggered when the KOSPI remains down 8 percent or more from the previous session for 1 minute. Once triggered, trading and order-taking are suspended for 20 minutes for listed shares on the Korea Securities Market, excluding bonds. Cancellation orders can be submitted.
Trading resumes after the halt using a single-price call auction for 10 minutes. Trading in equity-linked derivatives on the Korea Securities Market was also halted, including futures spreads.
In the market, weakness in U.S. semiconductor-related stocks was cited as a key reason for the circuit breaker. The previous activation was on July 13, when geopolitical risks in the Middle East region increased.
Oh Sang-yup
yub@d-today.co.kr