Colombian stocks gained for the fourth straight session Wednesday despite more declines in the share price of oil company Pacific Rubiales Energy Corp.
The Colcap index, which encompasses the country’s blue-chip stocks, inched up 0.1% to close at 1,642.53 points.
Rubiales shares fell 2.8% to COP43,500, their lowest level in more than a week.
Rubiales’ stock has suffered all year and took another hit starting last week when government regulators said they plan to examine whether the company should be classified as a conglomerate rather than a company. News reports have questioned whether the company, along with its many subsidiaries is trying to evade taxes by creating so many units. Some analysts, however, say the way the company is organized is no different from that of other oil companies in Colombia. Rubiales officials haven’t responded to the accusations.
The Colombian peso, meanwhile, strengthened to close at COP1,778.00 to the dollar from COP1,786.00 a day earlier. As global stock markets continue to settle down from the commotion earlier in the month, investors are refocusing on riskier assets including the Colombian peso.
The yield on Colombia’s peso-denominated bond due July 2024 closed at 7.397%, after starting the session at 7.360%.