Colombia stocks fell Monday led by energy firm Canacol Energy Ltd., whose shares plunged after the company said it was closing an exploration well in Guyana.
The IGBC index, considered the benchmark for Colombian stocks, posted a 0.74% decline to close at 14236.78 points.
Calgary-based Canacol’s shares dropped 18% to close at COP2,055 after the company announced it would close its K-2 well after unsuccessful drilling results.
CEO Charle Gamba said he wasn’t worried by the drop in the share price and said the company isn’t dwelling on the decision to close the well in Guyana.
“It’s bad news on the exploration front, but we have other exploration projects and we are concentrating in Colombia,” Gamba said.
Meantime, the Colombian peso was virtually unchanged Monday, with the currency closing at COP1,782.00 for $1 from COP1,782.10 on Wednesday, according to central bank data. Colombian financial markets were closed Thursday and Friday.
The peso has been rallying for weeks and is 5% stronger against the dollar this month. Markets are considering the possibility that Colombia’s central bank will enact new measures to halt the peso’s gains when it meets later this week.
The yield on the benchmark, peso-denominated 2020 bond stood at 8.250% Monday from 8.192% at the previous session’s close.