Colombia market update – May 19, 2011

The Colcap index finished down 0.27% today as the two largest oil companies ended up on opposite sides of the spectrum. Ecopetrol finished the session up 2.72% while Pacific Rubiales finished down 3.41%, both on heavy volume. Overall the market exchanged COP170.4 billion.

Pacific Rubiales reported earnings late yesterday that disappointed the markets as they showed a net loss of $69.6 million on $208 million in non-cash charges. EBITDA was up to USD$359 million, 58% higher year over year. 2011 will be a record year for exploration expenditures as they have an estimated $400 million program planned, as much as has been spent in the past 4 years.

The Peso appreciated slightly to the dollar today and closed at 1,815.90. Year to date the Peso has picked up 4.67% on the dollar.

Author Michael Sutton is head of International Trading at Bolsa y Renta.

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