Colombian Stocks Decline On Banking Shares; Peso Strengthens

Colombian stocks fell Friday as banking shares continued to decline due to investors' worries over a rise in overdue consumer loans.

The Colcap, considered the bellwether index for the Colombian Stock Exchange, fell 0.39% to end at 1,717.33 points.

Shares of Bancolombia (BCOLOMBIA.BO, CIB), which trades in New York as an ADR, fell 1.3% to COP27,160, while Davivienda (PFDAVVNDA.BO), Colombia's third-largest bank by total assets, fell 0.1% to COP22,240.

Loans by consumers that are past-due have risen 26% this year, leading authorities May 18 to order some banks to increase the amount of provisions, or reserves, they set aside before making new loans to consumer.

Meanwhile, the Colombian peso strengthened 0.6% Friday to COP1,830.30 for a dollar, from the previous day's close of COP1,841.00. It was the peso's second day of gains, after more than a week of declines due to concerns over Greece's debt problems.

The peso strengthened 10% from January through April, but so far in May has weakened 3.7%.

The yield on Colombia's peso denominated bond due July 2.024 closed at 7.164% after ending the previous session at 7.189%.