SEOUL, July 13 (Xinhua) -- South Korea's bourse operator on Monday triggered a circuit breaker on the KOSPI amid big tech sell-offs.
The benchmark KOSPI plunged 594.97 points, or 7.96 percent, to trade at 6,880.97 as of 1:35 p.m. local time (0435 GMT), while the smaller KOSDAQ tumbled 36.06 points, or 4.31 percent, to 801.37.
The Korea Exchange activated the circuit breaker in the KOSPI market following a bout of panic selling in big tech shares such as Samsung Electronics and SK hynix.
The panic selling was stoked by renewed clashes between the United States and Iran, along with Iran's declaration to block the Strait of Hormuz, which severely dented global investor sentiment.
Despite SK hynix's NASDAQ ADR listing, tech giants including Samsung Electronics faced heavy selling pressure on concerns over a potential earnings peak-out in the tech sector.
Shares of Samsung Electronics and SK hynix plummeted by over 9 percent and 13 percent each during the afternoon session.
Foreign and institutional investors were net sellers, dumping major semiconductor stocks, while retail investors went on buying the dip.
A level 1 circuit breaker was triggered in the KOSPI after the index sustained a loss of over 8 percent for more than one minute.
The circuit breaker is issued in stages when the KOSPI or KOSDAQ dives by 8 percent, 15 percent and 20 percent.
The first two stages halt trading for 20 minutes, followed by a 10-minute single price auction, while the final stage instantly shuts down the market for the day. ■