WhyItDropped

KOSPI · November 6, 2008

When the real economy showed up

-7.56%

single-day change vs previous close

Part of a longer stretch

Four months of testing the bottom twice

early in it · 2008-10-24 → 2009-03-02, +8.53% over the whole period

What happened that day?

  • On 6 November 2008 the KOSPI fell 7.56% in a single day
  • The first wave of financial panic had passed, and now the real-economy data was visibly deteriorating
  • International bodies published forecasts one after another showing advanced economies contracting
  • Korea lives on exports, so a weaker world economy hits it directly
  • Around this time monthly exports did start falling year on year
  • The low had been 24 October; this was a relapse after it. Full recovery took until January 2011

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.