The Colombian peso closed stronger Wednesday as local investors became
more confident after the stock market in the U.S. didn’t fall as much
as some had expected.
The peso closed at 2,055.90 Colombian pesos to the dollar from
COP2,074 on Tuesday. The peso had depreciated to as weak as COP2,086
earlier in the session.
“After the strong decline on Tuesday, people expected another
market tumble today,” Felipe Campos, a market analyst with local
brokerage Alianza Valores. “As the mood wasn’t that negative in New
York, people decided to buy here,” he added.
The Dow Jones Industrial Average had lost about 200 points on
Tuesday and ended 30 point down on Wednesday. At some point during the
session, the DJIA was positive.
On the stock market, the benchmark IGBC stock index rose 0.1% to
10,355.38 points after falling 1.5% earlier in the session. The index
has gained 37% so far this year.
Campos said it is a good moment to sell and pocket gains from this
year’s rally. He expects prices will fall in the coming weeks before
bouncing, giving investors good opportunities to buy.
Shares of state-controlled oil company Ecopetrol SA (ECOPETROL.BO) were the most traded and they rose 0.6% to COP2,635.
Preferred shares of Colombia’s largest bank Bancolombia SA (CIB) fell 1.4% to COP17,560.0.
The yield on the Colombian benchmark 2020 bond rose to 9.58% from 9.383%. (Dow Jones)
