The Colombian peso weakened Monday after investors expected the sale of a majority stake in a local power company by Spain's Gas Natural SA for $1.1 billion will increase demand for dollars.
The dollar fetched 1,872.60 Colombian pesos compared with COP1,843.5 Friday. The Colombian peso hasn't closed this weak since Oct. 7.
Gas Natural agreed to sell its 63.8% stake in power generation company Empresa de Energia del Pacifico SA, or EPSA, to local holding companies Colinversiones SA and Inversiones Argos SA and the country's largest bank Bancolombia SA for $1.1 billion.
"Investors expect either Gas Natural or those companies will have to buy the dollars from the market," Francisco Chaves, a market analyst at local brokerage Corredores Asociados, said.
Additionally, people are anticipating the country's central bank will take measures to stem the peso's recent gains when it meets Friday.
On the equity market, the IGBC Stock Index rose 2% to 11,158.83 points, boosted by shares of Colinversiones and Inversiones Argos.
Shares of Colinversiones rose 1.7% to COP50,900, while shares of Inversiones Argos rose 4.5% to COP16,880. (Dow Jones)
Andrewmann552
said:
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... Colombia's energy should not be in the hands of foreign corporations. Let's hope Uribe doesn't resort to the tactics of Mexico's Felipe Calderon, also desperate to sell Mexico to the highest bidder. Last week he sent the military crush Mexico's largest workers' union, leaving 60,000 people jobless. |
tomtom33
said:
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... I rather like the idea of foreign investment. Like it or not, we have a world economy. Those that fear anything foreign will be left behind. Embrace your differences and learn to cooperate with your neighbor. Hell, I even like some socialist ideas(but not many).  |
