Colombia’s peso weakens on Greece, Portugal, Spain downgrades

The Colombian peso weakened Wednesday on nervousness after rating agency Standard & Poor’s downgraded the debt of Greece, Portugal and Spain.

The peso weakened to 1,977 Colombian pesos to the dollar, from COP1,964 on Tuesday. The peso hadn’t ended that weak since Feb. 8, when it ended at COP2,003.5.

“The nervousness from Europe spread to the market here,” said Andrea Camacho, a market analyst with local brokerage Acciones y Valores.

On the debt market, the yield on the benchmark government peso-denominated bond rose to 8.416% from 8.367% the previous day.

The Colombian benchmark IGBC stock index fell 0.8% to 12,369.12 points, its lowest level since April 19. The Colcap index, which includes the largest companies by market capitalization, fell 1% to 1,457.28 points.

Shares of state-controlled oil company Ecopetrol SA fell 1.1% to COP2,730.

Shares of financial holding company Grupo de Inversiones Suramericana SA fell 1.6% to COP29,100.

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