Colombia market update – August 24

The market continues to rise as the Colcap index gained 0.27% on volume of COP207.1 billion.

Pacific Rubiales, Cementos Argos and Bancolombia, three of the largest companies in Colombia each finished with gains over 1% and over half of the session’s volume.

Ecopetrol ended the day down 1.22% following a release showing demand wasn´t as high as expected for the recent equity issue. They had been looking to raise COP2.5 billion and came up just shy with only COP2.4 billion in orders, the majority, 87%, came from retail buyers.

Though pension funds in Colombia are generally large buyers of equities, a rule exists preventing them from owning more than 15% of shares outstanding, and thus capping their demand. The Ecopetrol issuance comes on the heels of a recent secondary offering from Nutresa and led by Bolsa y Renta that was more than 16x oversubscribed.

The peso’s slide ended today as it strengthened slightly to close at 1,786.01.

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