Colombian Stocks Slip As Technical Barriers Break, Mineros And Ecopetrol Defy Downturn

(MENAFN- The Rio Times) The Colombian stock market closed lower on June 9, 2025, with the COLCAP index ending at 1,635.71, recording a 0.94% loss from the previous session, according to official exchange data and TradingView charts.

This decline came as global equity markets showed mixed signals and local technical indicators warned of a shift in momentum. Colombian equities started the day near 1,651 but quickly lost ground, breaking below key short-term support.

The daily chart shows the COLCAP closing near the session's low, with a large red candlestick confirming sustained selling pressure. The index now sits just above the 1,622 support zone, while the 200-day moving average at 1,470 remains a distant floor.

Technical analysis highlights a decisive break below the 20-day and 50-day moving averages. The MACD on the daily chart has crossed below its signal line, signaling a clear momentum shift to the downside.

The RSI has moved toward neutral, reflecting a loss of strength but not yet an oversold market. Bollinger Bands show the price hugging the lower band, indicating increased volatility and a heightened risk of further downside.



On the 4-hour chart, the COLCAP continued its slide, closing at 1,635.71. The price action remains below the cloud and key moving averages, reinforcing the bearish tone. Volumes stayed moderate, suggesting investors are reducing exposure rather than fleeing en masse.

Sector performance diverged sharply. Mineros S.A. surged 4.2% to 7,440 COP, topping the winners as investors sought safety in non-energy minerals. Ecopetrol gained 3.65% to 1,845 COP, buoyed by stable oil prices and resilient energy demand.

Bolsa de Valores de Colombia advanced 3.47% to 12,520 COP, reflecting renewed interest in financial infrastructure. The day's biggest losers came from the financial sector.

Bancolombia fell 1.76% to 50,100 COP, while Grupo Aval's preferred shares dropped 1.36% to 580 COP. Bancolombia Pf slipped 1.25% to 44,180 COP, as investors rotated out of banks amid growing uncertainty.

Compared to regional peers, Colombia's market underperformed. While the COLCAP has gained over 15% year-to-date, Brazil and Mexico remain under pressure from fiscal and political concerns.

The MSCI COLCAP's price-to-earnings ratio stands at 8.31, well below the global average, highlighting continued valuation discounts. ETF flows showed little conviction, with the iShares MSCI Colombia ETF (GXG) posting only minor changes.

The fund's price-to-earnings ratio increased to 10.36, reflecting cautious optimism but no decisive inflows. Colombia's market faces a critical juncture. Technical barriers have broken, and momentum has shifted.

Unless support at 1,622 holds, further declines may follow. Investors now watch for stabilization in volumes and a reversal in technical indicators before regaining confidence.

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