Colombian stocks rebounded Tuesday as worries of a global financial crisis receded some and investors moved back, at least temporarily, into riskier assets.
The Colcap index, a broad indicator of Colombia’s largest publicly traded firms, rose 2.8% to close at 1578.06 points. A day earlier, as global markets reeled on the news that Standard & Poor’s downgraded its rating on U.S. government debt for the first time ever, the Colcap index shed 3.3%.
Bancolombia, Colombia’s largest lending institution, saw its preferred shares surge 4.8% to COP27,240 as investors bet Monday’s selloff was overdone.
Another big gainer was Pacific Rubiales, a Canada-based oil firm that mostly operates in Colombia. It announced second quarter earnings Tuesday morning that showed net income was double market expectations. Rubiales shares rose 4.2% to close at COP43,840.
The Colombian peso, meanwhile, strengthened modestly to close at COP1,812.50 to the dollar from COP1,815.50 the day before.
The yield on Colombia’s peso-denominated bond due in July 2024 closed at 7.640% after ending a day earlier at 7.653%.