COLCAP Gains 2.7% as Peso Strengthens | Colombia Market Report, Oct 5
Colombia’s COLCAP rose 2.69% and the peso gained about 1.8% to about 3,196 per dollar. See the drivers, ADR moves and what to watch. The post COLCAP Gains 2.7% as Peso Strengthens | Colombia Market Report, Oct 5 appeared first on The Rio Times .
Colombian stocks and the peso surged on Monday. The COLCAP, the primary index of the Colombian stock exchange, climbed 2.69%. The peso strengthened to approximately 3,196 per US dollar, reflecting a 1.8% increase. This market movement followed Brazil's election result, which bolstered emerging markets, and Colombia's own economic and fiscal news hitting the market.
The importance of a stronger peso lies in its impact on the dollar cost of Colombian debt and the increased dollar value of Colombian stocks, particularly relevant to US owners of Ecopetrol and Bancolombia ADRs. The COLCAP index closed up 2.69%, as reported by Investing.com's Colombian market analysis. The peso's strength was observed to have risen by about 1.8%, with a daily range of 3,190 to 3,250.
The official rate (TRM) employed on Monday was 3,273.49, set prior to the observed change. Colombian ADRs listed in New York also experienced gains. Ecopetrol increased by 3.92% to US$17.25, while Bancolombia rose by 4.52% to US$96.06 (RT). The peso gain mirrored Chile's performance, and Portafolio attributed this to local factors, including the central bank's interest rate hike and a fiscal package announced by the government.
The central bank's October meeting and inflation data scheduled for Wednesday would determine whether the peso's gain persists. RT does not provide the COLCAP level, so the percentage change published by Colombian market sources was used. A falling dollar rate implies that one dollar will acquire fewer pesos.
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