WhyItDropped

KOSPI · June 24, 2016

The day Britain voted to leave

-3.09%

single-day change vs previous close

Part of a longer stretch

Twenty months that finally broke the range

midway through · 2015-08-24 → 2017-05-04, +22.48% over the whole period

What happened that day?

  • The KOSPI fell 3.09% on the day
  • Britain voted in a referendum to leave the European Union. Until the vote the market had expected remain
  • Much of the fall was simply that the expectation was wrong. Positions built on remain were unwound at once
  • Korea's direct trade with Britain is not large. It fell hard anyway because of the world reducing risk
  • In such moments money leaves emerging markets first, and Korea — large and easy to sell out of — is often sold first
  • Recovery was quick, though. The actual exit took years and the economic impact arrived gradually

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 written from the sources listed above.