Kosdaq plunge triggers second sidecar curbs

Electronic display boards show markets at a Hana Bank branch in central Seoul on Tuesday. [YONHAP]

The Korea Exchange activated sidecar curbs on Kosdaq Tuesday morning for the second consecutive day as the market plunged following a massive rally the previous day.

The sidecar curb was activated at 11:48 a.m. as the Kosdaq 150 Futures plunged 6.46 percent. The secondary index fell as low as 4.01 percent on Tuesday after it closed up 7.34 percent the previous day.

The sidecar curb, designed to ease the volatility in stock markets, is activated when the Kosdaq 150 futures rise or fall more than 6 percent or when the Kosdaq 150 index fluctuates more than 3 percent.

Korea’s market grew volatile after the financial authorities announced a ban on short selling on all stocks from Monday through next June.

BY JIN MIN-JI [jin.minji@joongang.co.kr]