South Korea Halts Small-Cap Equity Trading After Index Sinks 8%
- Kosdaq Index pares losses after trading halted for 20 minutes
- Small-cap measure jumped last year on biotech earnings bets
Shoppers and pedestrians walk past stores in the Myeongdong shopping district in Seoul.
Photographer: SeongJoon Cho/BloombergThis article is for subscribers only.
Trading in South Korea’s Kosdaq exchange for smaller stocks was temporarily halted after the benchmark gauge plunged more than 8 percent on concern valuations were excessive relative to earnings prospects.
Trading was suspended for 20 minutes at 11:55 a.m. in Seoul after the measure dropped 8.2 percent. The index pared declines to 6.1 percent at the close. Celltrion Inc. was the biggest drag on the small-cap measure after the stock almost tripled in the past 12 months. The Kospi gauge of larger companies closed at its lowest level since August.