Colombia stocks had one of their best days of the year Monday, led by big gains in top bank Bancolombia after the lender concluded a local share issue.
The Colcap index, considered the benchmark for the Colombian Stock Exchange, climbed 1.1% to end at 1,614.01 points. Colombians stocks are up 2.7% this year.
Bancolombia’s preferred shares rose 5% to end at COP27,480. The bank Friday night said in a filing that it sold locally 44 million of the 64 million shares it was offering at a price of COP26,000. The 20 million shares leftover will now be offered to foreign investors as American Depositary Receipts.
Meanwhile, the Colombian peso weakened Monday to close at COP1,818 to the dollar from COP1,808.20 a day earlier. The peso is 7% stronger against the dollar this year, making it one of the strongest currencies in the world.
After markets closed Monday, Colombia’s government announced it won’t repatriate $2.2 billion in oil and mining royalties and oil profits this year from national oil company Ecopetrol. The move is designed to reduce the number of greenbacks flooding the country, which could stem the peso’s strength.
The yield on Colombia’s peso-denominated bond due July 2024 closed at 7.350%, after beginning the session at 7.325%.