Colombian Stocks Rise On Exito's Earnings Report; Peso Gains

Monday marks third straight session of Colombia stock gains

Investors buy Exito shares after retailer announces strong 3Q results

Peso reaches strongest level in October at COP1,871.50 for a dollar

Colombia stocks rose for a third straight session Monday after top retailer Almacenes Exito SA (EXITO.BO) reported a huge increase in profits for the third quarter.

The Colombian Stock Exchange's benchmark Colcap index ended 0.44% higher at 1,634.43 points.

Exito shares rose 2.9% to COP24,300 after the company posted a net third-quarter profit of 58.76 billion Colombian pesos ($31 million), a 59% increase from the same quarter of 2.010.

Analysts at Colombian brokerage InterBolsa said the company's earnings were stronger than expected and are a "result of the positive performance in the country´s consumption, the strength of the internal demand and the solid commercial and expansion strategy through new openings and conversions."

Exito, controlled by French retailer Casino Guichard-Perrachon SA (CO.FR), is the market leader in Colombia with a 42% share of the formal retail market.

The Colombian peso, meanwhile, closed 1.1% stronger to reach its strongest level this month amid optimism that Europe is making progress in its efforts to resolve a debt crisis. 

The currency closed at COP1,871.50 to the dollar from COP1,892.95 at Friday's close.

The yield on Colombia's peso-denominated bond due July 2024 closed at 7.484%, after opening the session at 7.517%.