Colombia’s Colcap index gains as Bancolombia climbs; Peso strengthens

Colombia’s main stock index rose sharply Tuesday, fueled by gains in oil and financial shares, while the peso appreciated against the dollar.

The Colcap index, the benchmark for Colombia’s most heavily traded shares, rose 1.21% to end the session at 1633.62 points.

The index gained 3.95% in January after declining 14% for 2011. Bancolombia SA (CIB, BCOLOMBIA.BO), the largest lender in the country, was among the most heavily traded shares in Tuesday’s session.

Shares of Bancolombia rose 1.75% to COP27,960. Ecopetrol SA (EC, ECOPETROL.BO), the state-run oil firm, rose 0.3% to COP4,600. Pacific Rubiales Energy, a Toronto-based oil firm and Colombia’s largest private crude producer, climbed 0.40% to COP4,600.

The Colombian peso, meanwhile, appreciated to COP1,810.20 to the dollar from COP1,818.20 a day earlier. The peso’s gains came after the central bank announced late Tuesday an increase of 25 basis points in its benchmark interest rate to 5%.

The yield on Colombia’s peso-denominated bond due July 2024 closed at 7.352%, after beginning the session at 7.390%.

By Darcy Crowe, Dow Jones Newswires; (57) 314 298 3277; darcy.crowe@dowjones.com

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