Colombian stocks rose Wednesday to their highest level since mid-September as higher global oil prices and modest gains in U.S. stock markets kept alive a two-week rally.
The Colcap index, considered the benchmark for the Colombian Stock Exchange, rose 0.35% to end at 1,655.43 points. The index is 5.3% higher this year and has ended in positive territory in seven of the last eight sessions.
Among the individual shares showing gains Wednesday was state-controlled energy company Ecopetrol, which rose 0.1% to COP4,685. Shares of another heavily traded energy company, Pacific Rubiales, rose 0.04% to COP46,220.
The Colombian peso strengthened to close at COP1,779.85 to the dollar from COP1,783.00 day earlier. It was the peso’s strongest closing level in five months and it comes despite the central bank’s daily intervention aimed at stemming the peso’s gains. The bank started Monday buying $20 million in U.S. currency each day in the spot market.
The peso is 8% stronger against the dollar this year, making it one of the fastest-rising currencies in the world.
The yield on Colombia’s peso-denominated bond due July 2024 closed at 7.413%, after beginning the session at 7.406%. Yields have been rising amid concerns that annual inflation could remain above the middle of the central bank’s 2% to 4% target range.