WhyItDropped

KOSPI · August 19, 2011

Eurozone Crisis — KOSPI

-6.22%

single-day change vs previous close

Part of a longer stretch

The euro crisis and the US downgrade

near the end of it · 2011-05-02 → 2011-09-26, -25.85% over the whole period

What happened that day?

  • 19 August 2011 — KOSPI fell 6.22%, as the decline that began with the US downgrade merged with Europe's debt crisis
  • There's a structural reason Korean equities swing hard in such episodes
  • The market is open and liquid, making it easy for global money reducing risk to leave. Selling can occur regardless of domestic conditions
  • At the same time, heavy export dependence means weaker European and American demand feeds directly into earnings
  • Capital outflow and profit worries operating together
  • Fell 25.85% from peak

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.