Colombian stocks declined Tuesday, pressured lower by drops in oil stocks, while the peso appreciated against the dollar.
The IGBC index, the benchmark for the country, declined 0.28% to close at 14608.62 points. Pacific Rubiales Energy, an oil firm based in Toronto and the most heavily weighted stock in the index, dropped 0.67% to COP53,660.
The Colombian peso, meanwhile, appreciated to close at COP1,868.00 to the dollar from COP1,873.5 on Friday. Colombian markets were closed Monday for a holiday. The peso should continue appreciating on “structural forces,” RBC Capital Market said in a research note. The firm said that strong foreign direct investment, especially in the mining industry, and higher oil revenue are likely to push the peso to strengthen in the near term.
The yield on the benchmark 2020 peso-denominated bond known as TES stood at 8.167% Tuesday after opening at 8.148%.
