Colombian stocks continued to rally Wednesday, with the country’s benchmark index striking a fourth consecutive record high as inflows of investments from abroad keep boosting local shares.
The IGBC index ended Wednesday’s session at 15647.4, a 1.51% increase, as some key shares in the index posted strong gains. Shares of state oil firm Ecopetrol SA, Colombia’s largest company, rose 1.71% to COP4,165. Pacific Rubiales Energy, an oil firm also listed in Toronto, climbed 2.28% to COP55,640.
The index has surged more than 35% this year, boosted in large part by purchases from foreign investors, local brokerage Bolsa y Renta said in a report. “The trend is likely to continue for the end of the year,” the firm said.
Foreign investors are hoping to gain from the improved economic outlook in Colombia and the chances the local currency will continue to appreciate, Bolsa y Renta said in the report.
The Colombian peso, which has strengthened by nearly 13% this year, retreated Wednesday to COP1,790.70 to the dollar after opening at COP1,788.20.
The central bank has tried to rein in the peso by buying a minimum of $20 million daily for at least four months to mop up dollars in the spot market. On Wednesday, the central bank purchased $20 million at a rate of COP1,790.
The yield on Colombia’s peso-denominated, 2020 bond closed at 7.002% after opening at 7.049%.