The Colombian stock index rose Friday on investors’ expectations the central bank may further cut interest rates in a bid to slow the peso appreciation.
The benchmark IGBC stock index rose 0.7% to 10,942.50 points.
“Investors bought stocks as some of them expect the country’s central bank may cut interest rates,” said Cesar Tovar, market analyst with local brokerage Nacional de Valores.
Lower interest rates make companies’ financial costs fall.
On Thursday evening, Colombian Finance Minister Oscar Ivan Zuluaga said the central bank will evaluate whether to start buying dollars on the spot market to tame the appreciation of the peso.
He said the bank will evaluate taking other measures.
Shares of Grupo de Inversiones Suramericana SA (GRUPOSURA.BO) rose 1.8% to 23,200 Colombian pesos ($12.58).
Shares of state-controlled telephone company Empresa de Telecomunicaciones de Bogota SA (ETB.BO), or ETB, rose 3.6% to COP901.
The Colombian peso strengthened to 1,843.5 pesos to the dollar, from COP1,846 on Thursday. The yield on the benchmark peso-denominated government bond maturing in 2020 fell to 8.603% from 8.748% on Thursday.
