The Colombian IGBC stock index Tuesday rose for a second day to close at a record high as investors are confident after the Central Bank didn’t take any measure to limit the flow of foreign investment.
The IGBC benchmark index rose 1.9% to 14,520.47 points. The Colcap index, which includes the largest companies by market capitalization, rose 2% to 1,744.84 points.
The market was slow last week as some investors speculated the Central Bank was planning to take steps to curb the flow of foreign capital to the local market, said Jaime Rodriguez, a market analyst with local brokerage Asesores en Valores. “The bank didn’t make any decision during the monetary meeting last Friday and people are now more confident,” Rodriguez said.
Shares of oil company Pacific Rubiales Energy (PRE.T) rose 2.7% to 48,680 Colombian pesos ($26.98). The preferred shares of Colombia’s largest bank, Bancolombia SA (CIB), rose 3.2% to COP29,500.
The Colombian peso weakened a bit to COP1,804.15 to the dollar from COP1,803.99 on Monday. The Colombian Central Bank Monday bought $20 million at COP1,804.95.
The yield on the benchmark Colombian peso-denominated government bond, or TES, maturing in 2020, fell to 7.200% from 7.207% on Monday.
