Colombia stocks rose Tuesday for the first session in seven as shares of Canacol Energy soared following an announcement by the company of a huge increase in its proved oil reserves.
The Colcap index, considered the Colombian Stock Exchange’s benchmark index, rose 0.59% to close at 1,593.65 points.
Shares of Canacol, a Canadian-based oil firm with a double listing in Bogota and Toronto, rose 15% to COP1,265 after it announced a 73% increase in its official reserves, to 4.5 million barrels from 2.6 million barrels.
Some analysts questioned whether the increase in official reserves was as important as it may have appeared to some investors.
The increase “was a result of the reclassification of the reserves from probable to proved,” said brokerage firm InterBolsa. “However, the probable and possible reserves presented a decrease, suggesting the addition of reserves in both categories, derived from exploration success, is not the best.”
The Colombian peso, meanwhile, strengthened nearly 1% Tuesday to close at COP1,889.00 to the dollar from COP1,907.00 a day earlier, as rising U.S. stocks and hopes for a resolution to European debt woes increased investor appetite for riskier assets. Last week, the peso reached COP1,915.00 to the dollar, its weakest level of 2011.
The yield on Colombia’s peso-denominated bond due July 2024 closed at 7.502%, after opening the session at 7.521%.