Colombia’s benchmark IGBC stock index Thursday opened above its all-time record high as part of a year-end rally.
The index was up 1% to 11,536.48 points at 9.23 a.m., EST. The IGBC’s highest close was registered on November 23, 2007 at 11,438.88 points.
“There are several reasons, first low interest rates in the country encourage people to buy stocks, then there are tax breaks for assets parked on the stock market, so people tend to have more appetite for stocks at the end of the year and then there is a lot of liquidity,” Andres Jimenez, a Medellin-based market analyst with local brokerage Interbolsa, said.
Jimenez expects the index to keep on rising. “I’m bullish, but with caution,” he said.
A lot of share prices are already expensive compared to what Jimenez’ brokerage reckons.
“The expected 2010 economic recovery is already included in current prices,” he added. (Dow Jones)