Colombian Stocks Advance As Technicals Confirm Uptrend, Local Leaders Outperform Peers

(MENAFN- The Rio Times) Official data from the MSCI COLCAP Index shows Colombian equities closed at 1,693.94 on July 2, 2025, marking a 1.14% gain for the day. This move pushed the index to a new one-month high, reflecting a steady advance that stands out among regional peers.

The market's performance outpaced Brazil and Mexico, where fiscal and policy concerns limited gains, while Chile posted moderate advances. Trading activity concentrated in the industrials, services, and agriculture sectors.

Grupo Argos SA Pref led the winners, rising 3.75% to 17,160.00. Empresa de Telecomunicaciones de Bogotá followed with a 3.64% gain, closing at 57.00. Grupo de Inversiones Suramericana added 3.43%, ending at 50,060.00.

On the downside, Grupo Bolivar SA dropped 1.22% to 71,080.00, Canacol Energy Ltd fell 1.11% to 8,010.00, and Ecopetrol SA slipped 0.82% to 1,805.00. These moves reflect sector-specific developments and investor rotation rather than broad market stress.

Volumes remained robust and in line with recent averages, confirming that institutional and retail participants continue to engage actively. ETF flows into emerging markets, including Colombia, stayed positive in June, with international equity ETFs attracting $28.6 billion.



This trend signals sustained foreign interest in Colombian assets, even as global investors show caution elsewhere. Technical analysis of the daily chart reveals the COLCAP index trades above all major moving averages, including the 50, 100, and 200-day lines.
Colombian Market Extends Uptrend on Strong Technicals
The price action remains well-supported, with the 1,667 and 1,657 levels acting as key support. The index tested resistance at 1,694, which now serves as a reference for further upside.

The Relative Strength Index (RSI) stands at 63, indicating moderate bullish momentum but not yet overbought conditions. The Moving Average Convergence Divergence (MACD) shows a positive and rising trend, confirming upward momentum.

Bollinger Bands on the daily chart show the price near the upper band, suggesting increased volatility but not an extreme overbought signal. The 4-hour chart supports this view, with the RSI at 68.29 hinting at short-term overextension.

The MACD on the 4-hour chart remains positive, but the higher RSI suggests a possible pause or minor pullback in the near term. Volume spikes during the breakout confirm strong buying conviction.

Compared to regional peers, Colombia 's market demonstrates resilience and steady inflows, supported by stable inflation and a dovish central bank stance.

The fundamentals remain intact, with no major domestic shocks or macroeconomic surprises during the session. The market's ability to hold above key technical levels and attract foreign capital underlines its relative strength in a cautious global environment.

Colombian equities continue to attract attention for their stability and technical strength, with local leaders outperforming and the broader market maintaining a clear uptrend.

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