Colombia’s benchmark IGBC stock index rose 0.46% to a record high of 11,592.81 points, as an end-of-year rally driven by low interest rates and high levels of liquidity continued.
“We saw a lot of action in Ecopetrol, in Isagen and in Bancolombia,” said Jairo Diaz, an analyst at local brokerage Profesionales de Bolsa. “At the end of the year there is also extra demand for stocks for tax reasons.”
The Colcap index, which includes the largest companies by market capitalization, rose 0.15% to 1,368.48 points.
The Colombian peso weakened to COP2,003 against the dollar, from COP1992.90 at Monday’s close, on the back of a worldwide dollar rally and local demand for dollars.
“The rise in the dollar had something to do with it, but I think local factors were more important,” said German Verdugo, a market analyst with local brokerage Correval SA. “The peso opened weaker, then remained very stable. Looking at the volumes traded and the way the peso stopped moving, I think there was demand from one company or one bank.”
On the debt markets, the yield on the benchmark peso-denominated government bond maturing in 2020 rose to 8.342%, from 8.087% on Monday. The bond markets are focused on the central bank’s board on Friday, and Colombia’s third-quarter gross domestic product figures, which are scheduled to be published Monday, Verdugo added.