Key facts
- The Korea Exchange (KRX) activated a buy-side sidecar for the KOSPI index.
- Program trading for KOSPI-listed shares was suspended for five minutes.
- The KOSPI index rose 5.36% to 8,058.38.
- Bargain buying in semiconductor shares led the rise.
- A buy-side sidecar is triggered when the KOSPI 200 Futures index rises 5% or more for at least one minute.
South Korea's stock market operator, the Korea Exchange (KRX), activated a buy-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) on Friday due to a sharp rise. The measure, which temporarily suspends program trading, was triggered as the KOSPI surged, led by bargain buying in semiconductor shares. The index had previously plunged significantly on Thursday. The KRX suspended program trading for KOSPI-listed shares for five minutes around 1:50 p.m. The KOSPI rose 5.36% to 8,058.38 as of 1:57 p.m., following an opening gain of 1.2%. Investors were drawn to semiconductor stocks after reports emerged that artificial intelligence (AI) startup Anthropic is in discussions with Samsung Electronics to develop a custom AI chip. This rebound occurred after the index experienced a substantial 7.89% decline on Thursday, largely due to a sell-off in major tech companies like Samsung Electronics and SK hynix, fueled by concerns that the AI-driven market rally might have reached its peak. A buy-side sidecar is typically activated when the KOSPI 200 Futures index increases by 5% or more for a continuous minute.