Market Rebound and the Value Effect in Korea, August 2009

Abstract

Like other markets around the world, the Korean stock market has rebounded sharply from its low since the beginning of this year. This research bulletin uses the Barra Korea Equity Model (KRE2) to examine the important style drivers in the recent performance of Korean equities. We pay special attention to value stocks, whose behavior has become increasingly different from the rest of the stock market since the last quarter of 2008.