The Colombian stock index ended higher on Monday following a steep increase in the New York stock market.
The IGBC stock index rose 0.9% to 11255.87 points. The index is up 49% so far this year.
“The market here follows New York’s after there were several good news in the U.S.,” Jaime Rodriguez, a market analyst with local brokerage Asesores en Valores SA, said.
The Dow Jones Industrial Average rose more than 110 points led by banking shares after Goldman Sachs upgraded banks.
The Institute for Supply Management said its monthly non-manufacturing index, a measure of the U.S. service sector’s health, rose to 50.9 in September, signaling growth in overall activity.
As a result, shares of Colombia’s largest Bank Bancolombia SA (CIB) gained 2.2% to 20,620 Colombian pesos ($10.71).
Shares of Grupo de Inversiones Suramericana SA (GRUPOSURA.BO), which is the largest shareholder of Bancolombia, rose 2.5% to COP25,200.
On the currency market, the peso weakened to COP1,925.40 to the dollar from COP1,919 on Friday.
Meanwhile, the yield on the benchmark government peso-denominated bond maturing in 2020 fell to 8.899%, from 8.914% on Friday. (Dow Jones)