Colombia stocks fell Wednesday amid more declines in shares of Canadian-based oil firm Pacific Rubiales (PEGFF, PRE.T).
The IGBC index, considered the benchmark for Colombian stocks, posted a 0.45% decline to close at 14231.55 points. The index is down 8% this year.
Shares of Pacific Rubiales, which trade in both Bogota and Toronto, fell 1.7% to close at COP52,080, and the stock price is now down 18% since the year began. The company has been hurt by lower-than-expected figures on production and discoveries of new reserves, and investors are worried that more negative announcements by the company may be on the horizon.
Meanwhile, the Colombian peso bounced back strong from losses a day earlier. It closed Wednesday at COP1,772.05 to the dollar from COP1,790 Tuesday, according to central bank data.
The peso has been rallying for several weeks and is 5% stronger against the dollar this month. Markets are considering the possibility that Colombia’s central bank will enact new measures to halt the peso’s gains when it meets Friday.
The yield on the benchmark, peso-denominated 2020 bond stood at 8.284% Wednesday from 8.295% at the previous session’s close.