Colombian stocks rose Thursday led by big gains in shares of oil producer Pacific Rubiales (PEGFF, PRE.T) after the company announced a 52% increase in reserves.
The Colcap index, which tracks blue-chip stocks on the Colombian Stock Exchange, rose 1.0% to end at 1,720.51 points, its highest level since early July. The index is up 10% this year after falling 14% last year.
Rubiales shares jumped 7.4% to COP52,280 after the Toronto-based energy company said its reserves rose 52% in 2011 to 407 million barrels of oil equivalent. It was the highest closing price in nine months for the stock, which trades on bourses in Canada, Colombia and Brazil.
Meanwhile, the Colombian peso strengthened to COP1,776.50 to the dollar from COP1,782.00 a day earlier.
Colombia’s central bank decides Friday on interest rates and some analysts believe the bank will leave rates on hold at 5.0% due to concerns that if it increases interest rates to fight inflation, this may lead to a stronger peso. The bank has been criticized in recent months by exporters who believe the institution isn’t doing enough to reduce peso gains versus the dollar.
The yield on Colombia’s peso-denominated bond due July 2024 closed at 7.380%, after beginning the session at 7.386%.
