Colombia market update – May 09, 2011

The Colombian Colcap increased 1.09% today, largely led by a nearly 6% increase in oil prices. The gains were the primary result of strong performances by Bancolombia and Pacific Rubiales which were up 2.66% and 1.26%, respectively.

Europe continues its struggles as Greece sovereign debt was downgraded again today by S&P from BB- to B on word of further need to deal with the debts looming over the country.  A restructuring is the likely scenario which could quickly lead to other countries receiving support from the EU to ask for the same. Yields on 10 year Greek bonds increased 21 basis points today, similar maturity bonds in Spain and Portugal increased 12 and 8 basis points, respectively.

Despite reports that housing prices in the US are falling again, the dollar appreciated more than 1% to 1,790.35.

Oil made significant news today as it was up 5.96% to $102.96/barrel after strong declines recently. Gold also had a strong day as it gained 1.49% to 1,513.80/ounce.

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