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KOSPI Gains Over 8% on March 24
Stock Market Closes Above 1,600
KOSPI Gains Over 8% on March 24
  • By Yoon Young-sil
  • March 25, 2020, 09:09
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The KOSPI gained more than 8 percent to top 1,600 points on March 24.

The Korea Composite Stock Price Index (KOSPI) rose back to over 1,600 points on March 24.

The Fed’s unlimited quantitative easing and the South Korean government’s measures for financial market stabilization gave a boost to the South Korean stock market on March 24. That day, the Korea Composite Stock Price Index (KOSPI) gained more than 8 percent for the first time since Oct. 30, 2008.

The government made an announcement during the trading session on a bond market stabilization fund of 20 trillion won and a securities market stabilization fund of 10.7 trillion won. Then, foreign investors switched from net selling to net buying. Although the net selling added up to 81.4 billion won at the end of the trading session, the amount is much lower than recent ones. In addition, pension funds bought shares worth 219.5 billion won while individual investors disposed of their shares.

Foreign investors maintained net buying when it comes to IT stocks including semiconductor. The index of the electrical and electronics segment jumped 10.91 percent. Based on the government’s measures, those of securities and bank stocks rose 11.25 percent and 8.86 percent, respectively.

Still, it is also pointed out that various governments’ unprecedented measures released these days reflect how serious the current situation is. “The unprecedented aggressiveness implies that the current recession risks surpass those ahead of the previous financial crises,” said Kim Hyung-ryul, head of Kyobo Securities Research Center.