Colombia stocks surge on IMF relief efforts; Peso gains

Colombian stocks surged toward their highest price levels of the year Wednesday on optimism over efforts by the International Monetary Fund to repair global debt problems.

The Colcap index, considered the benchmark for the Colombian Stock Exchange, rose 0.98% to end at 1,613.67 points. The Colcap is now 2.7% higher from where it started the year, after falling 14% in 2011.

The IMF announced it plans to seek up to $600 billion in fresh financing sources as a way to fight problems related to low global economic growth and excessive debt loads in many countries.

Oil companies saw the biggest gains Wednesday in Bogota, shaking off a modest dip in global prices for a barrel of oil.

Canada-based oil firm Pacific Rubiales, which trades in both Bogota and Toronto, rose 2.9% to COP42,200, its highest closing level since Nov. 3. National oil company Ecopetrol rose 2.3% to COP4,605.

Meanwhile, the Colombian peso ended at COP1,823 to the dollar, its strongest level in four months and 0.8% higher from COP1,837 a day earlier.

The yield on Colombia’s peso-denominated bond due July 2024 closed at 7.368%, after beginning the session at 7.385%.

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