The Colombian stock index ended lower Thursday, following the U.S. markets.
The IGBC stock index fell 0.9% to 9,213.06 points. The index is down
14% so far this year. Stock prices in Colombia fell following the more
than 300-point decline of the Dow Jones Industrial Average.
“As the risk of a recession increases in the U.S., investors get more
concerned,” said Cesar Tovar, a market analyst with the local unit of
Stanford Group.
Shares in the U.S. tumbled as weak employment data flashed a recession warning.
The most-traded share was Ecopetrol SA, which fell 0.8% to 2,580 Colombian pesos ($1.18).
On the currency market, the peso weakened to COP 2,189 from COP 2,155 on
the previous day. Tovar said the peso weakened as investors are
concerned the slowdown in the U.S. will hurt Colombia.
On the debt market, though, the government bonds’ yields fell. Bonds’
yields move inversely to prices. The yield on the government
peso-denominated bond fell to 11.76% from 11.90% on Wednesday.
Investors bought bonds after the country’s statistics department said
Wednesday that inflation fell 0.19% in September, according to Tovar.
The market had expected a 0.15% increase. (Dow Jones)