Buy-side sidecar activated on Kospi after index opens 3.85% higher

Korea’s bourse operator on Wednesday activated a temporary buy-side trading curb, locally known as a sidecar, for the benchmark Kospi after the index surged at the opening bell, driven by gains in technology stocks.

Program trading for Kospi-listed shares was suspended for five minutes at 9:25 a.m., shortly after the market opened, according to the Korea Exchange. 

After opening 3.85 percent higher, the Kospi climbed 4.53 percent as of 9:27 a.m. on hopes of an agreement between the United States and Iran about the Strait of Hormuz and eased AI investment concerns.

A buy-side sidecar is triggered when the Kospi 200 Futures index rises 5 percent or more for at least one minute.

Yonhap