Colombian Stocks Manage Small Gains; Peso at 1-Month Low

Colombian stocks managed to rise slightly as the oil-laden market took its cue from modest gains in international crude oil prices rather than a sharp drop in the U.S. stock market.

The Colcap index, the benchmark for the Colombian Stock Exchange, rose 0.04% to end at 1,658.80 points.

Shares of state oil company Ecopetrol (ECOPETROL.BO, EC), which is due to release its earnings report later Tuesday, rose 0.9% to COP4,995. 

Analysts at Celfin said some local shareholders are buying Ecopetrol as a sort of local safe haven bet when worries over the European debt crisis cause other Colombian shares to drop.

Meanwhile, the Colombian peso ended at its weakest closing level since late June, at COP1,803.10 for a dollar, from COP1,789,55 the previous session. 

Broad gains in the U.S. dollar against the euro and worries of a less-stellar Colombian economy were the main reasons for the peso's weakness.

The yield on Colombia's peso-denominated bond due July 2.024 closed at 6.798% after ending the previous session at 6.768%. 

Most analysts doubt the central bank might cut interest rates when it meets Friday, and instead expect the bank's board to keep rates on hold for a fifth straight month.