롤러코스터에 올라탄 증시, 하루 만에 뒤바뀐 '사이드카'의 성적표 > K-wave Trends

At 1:16 p.m. on the 10th, the Korea Exchange activated a sell sidecar in the stock market and suspended the program ask price for 5 minutes. This is because the KOSPI 200 futures index plunged by more than 5% compared to the previous day's closing price for one minute, and at that time, the index was pushed down to 1,223.15 points. The sidecar system is a safety device to alleviate sudden market concentration and provide investors with time to make cool-headed decisions. However, the operation of this safety device, which is repeated every day, paradoxically serves as an indicator of how unstable the fundamentals of our stock market are. Market participants are complaining of extreme fatigue as they are exposed to extreme volatility, switching between buying and selling in just 24 hours.

The reason why this selling sidecar is triggered is even more shocking because it directly contradicts the market situation of the previous day. Just a day ago, the market was so lively that strong buying flowed in and a buying sidecar was activated, but in just one day, the mood turned 180 degrees. This rapid change in sentiment clearly shows how enormous the potential uncertainty is within the market. Investors had to face a barrage of selling again without even having time to guess whether yesterday's rise was a simple technical rebound or a trend reversal. This suggests that volatility has been maximized to the point where attempts to predict the direction of the market are meaningless.

The decline in the index is also unusual. On this day, KOSPI started lower at 7,899.77 points, and then gradually expanded its decline, threatening to reach the 7,600 mark at one point. The 5-6% decline recorded during the day is typical of panic selling, which goes beyond a simple correction. In particular, market concerns are growing that foreign investors are leading the decline in the index by recording large-scale net sales of more than 2.2 trillion won. The combination of listings for profit and the weakness of the U.S. semiconductor market is adding to the downward pressure on the domestic stock market.

Experts agree that it is difficult to dismiss this situation as simply a temporary phenomenon. The fact that the 12th sidecar has already been activated this year means that our stock market has entered the stage of 'routine volatility' outside the normal range. The market has continued to run wild over the past few days, with a buying sidecar on the 1st followed by a selling sidecar on the 5th and 8th. This extreme volatility is likely to dampen investment sentiment and act as a fatal obstacle to long-term capital flow. Ultimately, it is time to fundamentally check whether the foundation of trust that supported the market is shaking.

The sharp rise in the won-dollar exchange rate is another key variable that is fueling market anxiety. On this day, the exchange rate started at 1,525.0 won, representing the unstable sentiment of the market. As the exchange rate fluctuates, the withdrawal of foreign investors accelerates, which in turn leads to a decline in stock prices, forming a vicious cycle. As doubts about the fundamental strength of the economy coupled with the influence of external variables, individual investors found themselves in a situation of isolation and helplessness, not knowing where to take refuge. Although the government and financial authorities will consider market stabilization measures, this volatile market is likely to continue for some time unless fundamental uncertainty is resolved.