KOSPI Rallies Above 2,000 Points
07 September, 2019
The Korea Composite Stock Price Index rallied 0.82 percent on Thursday to close at 2,004.75 points after suffering huge declines last month. The KOSPI also rose 1.16 percent the previous day.
It was the first time in about a month that the main index closed above 2,000 points. It hit a low of 1,909.71 points on Aug. 7 amid the U.S.-China trade war compounded by Japanese export restrictions and deteriorating corporate earnings.
Analysts attributed the rally to the easing of some uncertainties. Cho Yong-jun, head of Hana Financial Investment, said, "The recovery in stock prices was triggered by the Hong Kong government announcing Wednesday that it will withdraw the extradition law that triggered massive protests."
And on Thursday, there was news that the U.S. and China will resume trade talks. Jung Yeon-woo at Daeshin Securities said, "The recovery was powered by foreign buying following the easing of geopolitical risks."
But most analysts say it is too early to expect a full-fledged recovery as uncertainties still loom.
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