Korea's KOSDAQ index surges nearly 6%, triggering buy-side circuit breaker for the first time in three consecutive trading days

Odaily News: After last month's sharp rebound, while the upward momentum of Korea's KOSPI index has weakened, the KOSDAQ index is igniting a market recovery. For the first time in its history, the KOSDAQ index triggered the buy-side sidecar mechanism for three consecutive trading days, closing up over 5% driven by institutional funds. The KOSPI index, which had turned lower during the session, also ended up over 1% as institutional selling pressure waned in the final stretch. That day, KOSDAQ market flows were primarily driven by institutional investors. Individual investors and foreign investors recorded net selling of 258 billion KRW and 277 billion KRW, respectively, while institutional investors net bought 543 billion KRW, pushing the index higher.

Institutional investors have maintained net buying for three consecutive trading days, with cumulative net purchases exceeding 1 trillion KRW during the period. So far this year, the KOSDAQ market has seen two instances of the sidecar mechanism being triggered for three consecutive trading days: March 4-6 (sell, buy, buy) and July 14-16 (buy, sell, sell). This time marks the first occurrence of buy-side sidecars being triggered on all three consecutive trading days. (Jin Shi)