(LEAD) Seoul stocks snap 4-day losing streak on chip bargain hunting

Seoul stocks have ended a four-day decline, closing sharply higher as investors took advantage of bargain buying opportunities in major tech shares and semiconductors. The Korean won weakened against the US dollar. The Korea Composite Stock Price Index (KOSPI) rose 90.71 points, or 1.37%, to 6,717.97. Trading volume was relatively light at 197.7 million shares worth 15.9 trillion won (US$11.6 billion).

Investors were outnumbered by sellers, with 576 stocks losing value compared to 303 that gained. Institutional investors were net buyers, snapping up 1.21 trillion won worth of shares, while retail and foreign investors were net sellers, offloading a combined 2.87 trillion won.

Analysts believe the recent drop in the KOSPI was excessive, and bargain hunters focused on semiconductor giants, particularly memory stocks, as the upward trend continues. Lee Kyoung-min, an analyst at Daishin Securities, noted that investors are now closely monitoring the outcomes of the U.S. Federal Reserve's policy meeting, which may include a decision on interest rate hikes.

Semiconductor stocks performed strongly, with Samsung Electronics and SK hynix both experiencing gains. Samsung Electronics rose 2.01% to 253,500 won, while SK hynix jumped 4.08% to 1,759,000 won. Conversely, other major market players experienced declines. Hyundai Motor fell 1.36% to 362,000 won, Hanwha Aerospace decreased by 0.75% to 1,055,000 won, and bio firm Celltrion dropped 0.17% to 177,200 won.

The Korean won was trading at 1,368.6 won by the close of the session, marking a 9.2 won decrease from the previous day's closing rate.