KOSDAQ Circuit Breaker Activated Amid Sharp Rally, Institutional Buying Provides Fuel
On the morning of August 4, South Korean equity markets displayed a split personality. While the benchmark KOSPI index struggled for direction, the tech-heavy KOSDAQ market charged ahead, climbing more than 5% at one point. The rapid ascent triggered the exchange's volatility control mechanism—the buying-side circuit breaker, which halts program trading—at 9:47 AM Beijing Time. This marks the third consecutive trading day, and the 17th time this year, that this safety measure has been activated on KOSDAQ, highlighting the market's intense activity and susceptibility to sharp swings.
Institutional Investors Step Up as Net Buyers
The rally was primarily fueled by institutional investors, who emerged as the key stabilizing force. Data for the session showed institutions were net buyers of a substantial 354 billion won in the KOSDAQ market. This buying pressure stood in stark contrast to the actions of retail and foreign investors, who were net sellers of 167 billion won and 183 billion won, respectively. This divergence in capital flow underscores the current confidence level among major market players.
Biotech Sector Leads the Charge
The biotech sector emerged as the standout performer, with several stocks posting significant gains:
- LigaChem Biosciences jumped nearly 13%
- ABL Bio rose over 12%
- Alteogen gained more than 7%
- HLB and Peptron both advanced over 9%
- Sam Chun Dang Pharm climbed 6%
The sector's broad-based strength not only boosted overall market sentiment but also reflects continued investor optimism toward South Korea's innovative drug and biotech landscape. The frequent surges in this sector suggest evolving structural opportunities may be taking shape.