WhyItDropped

KOSPI · June 17, 1998

The day after the bottom

+8.50%

single-day change vs previous close

Part of a longer stretch

Korea's post-IMF rebound

early in it · 1998-06-16 → 1999-04-27, +183.56% over the whole period

What happened that day?

  • On 17 June 1998 the KOSPI rose 8.5% in a single day
  • The day before, 16 June, was the final low of the currency crisis decline
  • Plans for winding up insolvent banks took concrete shape, signalling that financial restructuring was really happening
  • International support was actually being disbursed and reserves had started recovering, which mattered a great deal
  • At a bottom most of the selling is already done, so even small good news moves prices a long way
  • The rebound from here ran to the old high in April 1999

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.