World markets suffered heavy losses Wednesday while the Colcap index followed suit in a more subdued manner. Losses on the index only amounted to 0.70%, largely the result of drops in the prices of both Cementos Argos (-2.09%) and Gruposura (-2.16%). Volume continued about recent daily averages as COP$202.0 billion was traded on the BVC today.
S&P put Gruposura on negative watch today after the company’s recent agreement to purchase the majority of ING’s Latin American operations for US$3.7 billion. Current ratings are BBB- which was recently achieved following Colombia’s ratings upgrade.
Bancolombia issued bonds today ranging from 1.5 years to 15 years. The largest tranche, the 15 year bond, was issued at 4.60% + CPI (which today was 3.23%). Overall COP$800 billion was raised.
The Peso closed weaker to the dollar and closed at 1,767.50.
Author Michael Sutton is head of International Trading at Bolsa y Renta.