The Colcap index followed the S&P500 and BOVESPA lower Wednesday despite the good news from Moodys the day before. The market dropped 0.38% on
volume of COP$163 billion. The smaller caps, Biomax and Tablemac led the way as they increased 3.20% and 2.46%, respectively.
President Santos publically suggested the Colombian Central Bank hold rates where they are after having increased them 4 times this year in 25bps increments. The Central Bank has moved aggressively following inflation figures earlier in the year showing signs of accelerating after a devastating rainy season in Colombia. Santos on the other hand pointed to rates dampening economic growth. The government has mentioned GDP goals in the 5-6% range, however conservative estimates are generally around 4.5-5.0%.
The Peso finished the trading session relatively flat at 1,791.26.
Author Michael Sutton is head of International Trading at Bolsa y Renta.