[Edaily Reporter Kim Hyung-il ] The domestic stock market continues to show strength, led by the KOSDAQ, amid expectations that the Federal Reserve (Fed) will cut interest rates in response to a slowdown in U.S. employment. The KOSDAQ is maintaining a sharp rise of over 5% as buying interest flows into biotech, semiconductor equipment, and secondary battery stocks. Meanwhile, the KOSPI recovered the 6,300 level early in the session but has since given up those gains and is fluctuating around the flat line.

According to MP Doctor on the 10th, as of 1:48 p.m., the KOSDAQ is trading at 843.98, up 45.17 points (5.65%) from the previous trading day. There are 1,344 stocks rising (including 9 hitting the daily upper limit), 46 unchanged, and 329 falling. The KOSPI recovered the 6,300 level early in the session but has since given up those gains and is trading sideways around the 6,200 level.

By investor type, foreign and institutional investors led the index higher on the KOSDAQ market with net purchases of 118.2 billion won and 432.5 billion won, respectively. Retail investors engaged in profit-taking, resulting in net sales of 546.3 billion won. In contrast, on the KOSPI market, while foreign investors made net sales of 1.1377 trillion won, retail investors and institutions made net purchases of 706 billion won and 407.7 billion won, respectively, absorbing the selling pressure.

As a result, the top-market-cap stocks on the KOSDAQ continue to show strength. Alteogen Inc.(196170)(12.62%) posted a double-digit gain, while JUSUNG ENGINEERING Co.,Ltd.(036930)(11.66%), WONIK IPS Co.,Ltd.(240810)(9.17%), ABL Bio Inc.(298380)(8.08%), ECOPRO CO., LTD(086520)(7.56%), HLB INC.(028300)(6.7%), ECOPRO BM CO., LTD.(247540)(5.98%), and LEENO Industrial Inc(058470)(5.63%) all rose in tandem, driving the index higher.

The top KOSPI stocks by market capitalization showed mixed performance. While SamsungElectronics(005930)(-0.65%) and SK hynix(000660)(-0.91%), which had risen early in the session, both turned lower, SamsungElectronics(1P)(005935)(-1.06%), SamsungElectroMechanics(009150)(-1.37%), LG Energy Solution(373220)(-1.39%), KB Financial Group(105560)(-2.84%), and HANWHA AEROSPACE(012450)(-5.65%) were among those trading lower. On the other hand, HyundaiMotor(005380)(1.64%) and SKSQUARE(402340)(0.11%) continued to rise.

Early in the session, the KOSDAQ 150 futures and the index surged sharply, triggering the 31st “buy-side car” of the year. The securities industry analyzed that the rise in the domestic stock market was driven by a recovery in risk appetite as concerns over the Fed’s monetary tightening eased due to a slowdown in U.S. employment.

Kang Jin-hyuk, an analyst at Shinhan Investment Securities, said, “The domestic stock market rebounded as macroeconomic conditions improved after U.S. July nonfarm payrolls fell significantly short of market expectations,” adding, “Top-market-cap stocks, led by biotech and including semiconductor equipment and secondary batteries, rose in tandem, causing the KOSDAQ to outperform the KOSPI.”

Kim Ju-yeon, an analyst at MIRAE ASSET SECURITIES, analyzed, “Rotational buying, centered on biotech, flowed into the market, causing the top-market-cap stocks on the KOSDAQ to rise in unison.” She added, “Buying momentum spread to thematic stocks such as aerospace and defense, sustaining the KOSDAQ’s upward trend.”