IGBC sinks to lowest since June 2006

The Colombian benchmark stock index ended down 5.6% Friday at its
lowest level since June 2006 as markets all over the world tanked.

The IGBC fell to 6,671.42 points, marking the first time it closed below 7,000 since June 14, 2006, when it ended at 6,562.28.

“The market here follows what happens in the world,” Corficolombiana’s
market analyst Jorge Cortes said. “Additionally, when prices tank,
investors who buy with borrowed funds are forced to sell to guarantee
their investments.”

The Colombian index didn’t plunge as deep as other markets in the
region, said Johanna Castro, a market analyst from Corredores
Asociados. “The market here closes earlier and trading is shorter,” she
said.

In Argentina and Brazil, share prices are falling more than they did in
Colombia, she said. The Peruvian stock exchange had to suspend trading
because of the decline.

The Colombian peso weakened to CLP2,371 to the dollar, from COP2,365
the previous day. The peso hadn’t closed that weak since Nov. 23, 2006.

The yield on the 2020 benchmark peso-denominated government bond rose
to 13.431%, its highest close ever, from 13.381% the previous day. (Dow Jones)

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