Key facts
- The Korea Exchange (KRX) activated a sell-side sidecar for the KOSPI.
- Program trading for the KOSPI was suspended for five minutes.
- The KOSPI fell sharply due to profit-taking.
- Samsung Electronics estimated its second-quarter operating profit at 89.4 trillion won.
South Korea's benchmark Korea Composite Stock Price Index (KOSPI) experienced a sharp decline, prompting the Korea Exchange (KRX) to activate a sell-side sidecar. Program trading for the KOSPI was suspended for five minutes around 10:23 a.m. on Tuesday.
The selling pressure intensified as investors locked in profits following the release of Samsung Electronics Co.'s preliminary second-quarter earnings estimate. The chipmaker estimated its operating profit for the April-June period at 89.4 trillion won (US$58.4 billion), surpassing market forecasts. This news led to a plunge in local technology stocks.
The KOSPI, which opened down 1.6 percent at 7,920.48, fell to a session low of 7,568.59.