WhyItDropped

KOSPI · June 16, 2006

A bounce three days past the bottom

+3.51%

single-day change vs previous close

Part of a longer stretch

Money returns to emerging markets

early in it · 2006-06-13 → 2007-02-22, +21.73% over the whole period

What happened that day?

  • The KOSPI rose 3.51% on the day. 13 June had been the bottom of this decline
  • A US inflation reading came in as expected, easing worry about further rises
  • The KOSPI had lost more than seventeen percent over the preceding month. Having fallen that far, it recovered correspondingly
  • The fall had nothing to do with Korean company results. It was swept along by the world reducing risk
  • So when that flow stopped, prices came back quickly
  • The recovery that began here ran to February of the following year

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.