Colombian stocks dropped Tuesday, tracking a decline in U.S. markets, while the peso weakened against the dollar.
The Colcap index, the benchmark for Colombian shares, fell 0.82% to 1620.98 points, ending a three day streak of gains. The Colcap is down 11.12% so far this year.
Oil shares, which have a decisive weighing on the index, led the drop Tuesday despite higher crude prices. Light, sweet crude oil for December delivery on the New York Mercantile Exchange settled $1.90, or 2.1%, a barrel higher, at $93.17.
Pacific Rubiales Energy (PEGFF, PRE.T), a Toronto-based oil firm that ranks as Colombia’s largest private crude producer, fell 4.04% to COP45,100. The company, which faced labor disputes earlier this year, is facing a new bout of conflict with its workers.
More than 4,000 unionized workers, including direct employees and contracted workers, went on strike Monday as labor negotiations with the company broke down. Oil output by the company has not been affected by the strike.
Ecopetrol SA (EC, ECOPETROL.BO), the state-run oil firm, fell 0.5% to COP3,990. The company reported a record high third-quarter unconsolidated net profit on Monday, fueled by higher oil prices and rising production.
Net profits last quarter for Ecopetrol were COP4.2 trillion ($2.24 billion), a 146% jump from COP1.7 trillion in the third quarter last year.
The Colombian peso, meanwhile, weakened to COP1,878.80 to the dollar from COP1,871.50 a day earlier.