The Colcap index dropped 0.18% in Tuesday’s session largely as the result of down days from Bancolombia and Pacific Rubiales (-1.55% and -1.16%). Volume was within this year’s average as COP$166 billion traded hands.
CPI for May registered in at 0.28%, 0.10% higher than inflation in May 2010. Food was the primary source of the increased figure as it rose 0.78% last month. The Central Bank has a target rate of 3% (+-1%). Inflation over the previous 12 months has been 3.02%.
Sales of cars in Colombia were 28,205 in May, bringing the total for the first 5 months of the year to 131,187, a 51.3% increase compared to the same month last year.
The peso continued its strong move against the dollar as it appreciated to 1,767.10.
Author Michael Sutton is head of International Trading at Bolsa y Renta.