Colombian Stocks Remain 12% Lower This Year
Peso Weakens As Bets Build On Possible Capital Controls
Colombian stocks rallied Tuesday, tracking big gains in U.S. stock markets and rising oil prices.
The Colcap index, which encompasses the country's blue-chip stocks, jumped 1.86% to close at 1,605.45 points.
Despite Tuesday's gains, Colombian stocks remain 3% lower this month and 12% lower in 2.011.
Tuesday's gains were led by oil firms that were aided rising prices for crude oil in international markets.
Shares of Canada-based Pacific Rubiales Energy (PRE.T) rose 2.5% to COP45,200, while state-controlled Ecopetrol (ECOPETROL.BO) jumped 1.1% to COP3,685.
The Colombian peso, meanwhile, weakened as investors bet monetary authorities may soon announce new measures to stem the peso's growing strength against the dollar.
The peso closed at COP1,789 to the dollar from COP1,780 a day earlier.
The Eurasia Group said in a report late Monday the Colombian government is "likely inching closer to implementing capital controls, the administration is operating within a political context where the COP's appreciation is becoming more of an issue."
Analysts say such forecasts can weaken the peso on the assumption that capital controls or other measures might cause an immediate drop in the trading value of Colombia's currency.
The yield on Colombia's peso denominated bond due July 2.024 closed at 7.346%, after ending a day earlier at 7.301%.
Peso Weakens As Bets Build On Possible Capital Controls
Colombian stocks rallied Tuesday, tracking big gains in U.S. stock markets and rising oil prices.
The Colcap index, which encompasses the country's blue-chip stocks, jumped 1.86% to close at 1,605.45 points.
Despite Tuesday's gains, Colombian stocks remain 3% lower this month and 12% lower in 2.011.
Tuesday's gains were led by oil firms that were aided rising prices for crude oil in international markets.
Shares of Canada-based Pacific Rubiales Energy (PRE.T) rose 2.5% to COP45,200, while state-controlled Ecopetrol (ECOPETROL.BO) jumped 1.1% to COP3,685.
The Colombian peso, meanwhile, weakened as investors bet monetary authorities may soon announce new measures to stem the peso's growing strength against the dollar.
The peso closed at COP1,789 to the dollar from COP1,780 a day earlier.
The Eurasia Group said in a report late Monday the Colombian government is "likely inching closer to implementing capital controls, the administration is operating within a political context where the COP's appreciation is becoming more of an issue."
Analysts say such forecasts can weaken the peso on the assumption that capital controls or other measures might cause an immediate drop in the trading value of Colombia's currency.
The yield on Colombia's peso denominated bond due July 2.024 closed at 7.346%, after ending a day earlier at 7.301%.
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