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KOSPI Market Cap Plunges by 57 Tril. Won on March 9
KOSPI Drops 4.19%
KOSPI Market Cap Plunges by 57 Tril. Won on March 9
  • By Yoon Young-sil
  • March 10, 2020, 09:34
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Traders work at a dealing room of KEB Hana Bank in Jung-gu, Seoul on March 9 when Asian financial markets fluctuated after a drop in oil prices.  

The Korea Composite Stock Price Index (KOSPI) dropped 4.19 percent to close at 1,954.77 points on March 9, showing a decline of over 4 percent for the first time since Oct. 11, 2018.

On March 9 alone, the aggregate value of the stock market plunged by 57.5 trillion won and that of the Korea Securities Dealers Automated Quotation Index (KOSDAQ) market dropped by 10.2 trillion won. Samsung Electronics lost 4.07 percent and SK Hynix lost 6.16 percent. Likewise, the stock prices of Naver, LG Chem and Samsung SDI dropped 6.41 percent, 6.5 percent and 6.79 percent, respectively.

That day, foreign investors dumped shares worth 1,312.2 billion won in KOSPI and 139.2 billion won in KOSDAQ and the combined amount hit an all-time high. Besides, the won-dollar exchange rate soared by 11.9 won to 1,204.2 won per U.S. dollar.

With the stock markets shrinking and oil prices plummeting, the popularity of government bonds as safe assets spiked. In the South Korean bond market, the three-year government bond yield fell four basis points to close at 1.038 percent after reaching 0.998 percent in the morning. Though temporary, the yield fell below 1 percent for the first time ever.