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South Korea's benchmark KOSPI index has pushed further into the red, extending a run of losses to its lowest point since April 14. The case for a floor in Korean equities is complicated.
Successive sessions of selling have reversed whatever gains the index posted after that mid-April mark. The retreat in context The KOSPI is the main gauge of South Korean equities.
When the index extends losses to a multi-month low, the read-through is direct: the buyers active after April 14 have been outrun by sellers, and the market has walked back to the valuation level that prevailed on that date.
A retracement to a prior date rather than a prior price point carries a specific meaning. It says the net effect of every session since April 14 is zero. Whatever drove the index away from that level has been undone.
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