(LEAD) Seoul shares spike 4.6 pct to 5-week high on renewed AI optimism

SEOUL, Sept. 7 (Yonhap) -- South Korean shares skyrocketed 4.6 percent to a five-week peak on Monday, buoyed by the advent of OpenAI's cutting-edge artificial intelligence (AI) model. The Korea Composite Stock Price Index (KOSPI) soared 4.61 percent, closing at 6,995.39, marking the highest finish since July 23. Foreign and institutional investors contributed to the surge, making a net gain of 2.55 trillion won and 2.64 trillion won, respectively.

However, individual investors saw a net loss of 6.83 trillion won. The index's rally was spurred by the launch of OpenAI's novel GPT-6 Astra, which is anticipated to ignite demand for memory chips. Despite the broader market's decline, analysts like Kang Jin-hyuk from Shinhan Securities noted that the new Astra could usher in the era of artificial general intelligence (AGI), thereby fueling investor enthusiasm.

The semiconductor sector witnessed significant gains, with Samsung Electronics and SK hynix leading the charge, while top carmaker Hyundai Motor and its auto parts affiliate also saw a rise. Banks also experienced a bullish trend, with Hana Financial Group and Shinhan Financial Group reporting gains. Defense firms, on the other hand, were mixed, with LIG D&A and Hanwha Aerospace experiencing slight declines.