WhyItDropped

KOSPI · March 25, 2020

The day individuals started buying

+5.89%

single-day change vs previous close

Part of a longer stretch

Korea's COVID rebound

early in it · 2020-03-19 → 2020-11-23, +78.55% over the whole period

What happened that day?

  • The KOSPI rose 5.89% on the day, the fourth session off the bottom
  • The government announced a large support programme to keep companies funded, buying corporate bonds and expanding lending
  • A large fiscal package was also being agreed in the US
  • What marked the Korean market in this period was the individual investor. Individuals absorbed what foreign investors were selling
  • The flow was large enough to be given a name of its own, and it changed the character of the market for years afterwards
  • It was a stretch where people who judged shares cheap came in all at once, and the rise that followed was correspondingly steep

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.