Korea’s Kosdaq Index Erases All Gains From Short-Selling Ban
- Small-cap gauge slides for a fifth straight session on Monday
- One-day rally triggered on Nov. 6 by the ban fails to hold
This article is for subscribers only.
The boost to South Korean stocks from the ban on short-selling has quickly faded, with an index of small-cap stocks erasing all the gains seen following the regulator’s surprise decision.
The Kosdaq Index slid 1.9% on Monday. It has fallen in every single session since the ban sparked a 7.3% jump on Nov. 6. Electric vehicle battery names including Ecopro BM Co., Ecopro Co. and L&F Co. have been the biggest drags on the gauge over the past week. The benchmark Kospi Index ended down 0.2%. It has also reversed the bulk of its advance seen following the move.