WhyItDropped

KOSPI · November 1, 2000

A big first day of the month

+6.66%

single-day change vs previous close

Part of a longer stretch

Korea's dot-com hangover

midway through · 2000-01-04 → 2001-09-17, -55.74% over the whole period

What happened that day?

  • The KOSPI rose 6.66% to close at 548.76. No single trigger for the day could be pinned down
  • The market was sliding 41.21% from its July high to its December low, and this was a bounce inside that
  • Month boundaries draw a cluster of repositioning trades. That is one reason the swings get wider regardless of direction
  • What weighed on the market then was the earnings outlook for technology companies. Prices had already come a long way down
  • From a low base, small good news moves things a lot — there is less stock left to sell into it
  • Even so, the low of this episode did not arrive for another seven weeks

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is put together from the public record; where a specific source was consulted it is listed above.