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Colombia's Peso Holds Line As Bogotá Stocks Ease From Record Highs
(MENAFN- The Rio Times) Key Points
Colombia's turbocharged equity rally finally paused on Thursday, even as the peso kept riding the global dollar sell-off triggered by the Federal Reserve's latest cut.
The MSCI Colcap index edged down 0.26% to 2,114.21 points, a shallow correction after gains of more than 50% this year.
Turnover on the local exchange was about COP 102,653 million, roughly 11% below the previous session, a sign that fast money is locking in gains while longer-term investors hold their positions.
Five names still posted strong advances: Bolsa de Valores de Colombia jumped 2.52%, Grupo Bolívar 2.24%, preferred Grupo Sura 2.13%, preferred Corficolombiana 1.72% and ordinary Corficolombiana 1.71%.
On the downside, national oil champion Ecopetrol and preferred Grupo Cibest each fell 1.58%, while preferred Grupo Aval lost 1.38%, Empresa de Energía de Bogotá 0.99% and preferred Davivienda 0.60%.
Analysts saw the moves as healthy rotation out of rate-sensitive and state-linked names, after weeks in which they benefited from global risk-on flows despite concern over a heavier government hand in energy and pensions.
In currency markets, the pes firmed again, with the official TRM at 3,810.99 and spot near 3,803 per dollar in early Friday dealing.
The Fed's 25-basis-point cut pushed the dollar index to just under 98 and kept Colombia's 9.25% policy rate attractive for investors seeking real yield.
Technically, USD/COP is consolidating around 3,800. Traders say any bounce back toward 3,850–3,900 would likely attract fresh selling, while a break below 3,780 could reopen last month's lows near 3,700.
Behind the screens, the same fault lines remain. Investors like the central bank's cautious stance and the private sector's push to deepen capital markets.
They are far less convinced by expansive left-wing agendas that promise more social spending but risk unsettling a recovery built on market confidence.
Colcap slipped 0.26% after a huge year-long rally, with investors taking profits rather than abandoning Colombia.
The peso stayed near 3,800 per dollar as the Fed's rate cut pushed the dollar index below 98, supporting local carry trades.
Markets applaud the central bank's discipline but remain cautious about higher spending plans from the left and 2026 election politics.
Colombia's turbocharged equity rally finally paused on Thursday, even as the peso kept riding the global dollar sell-off triggered by the Federal Reserve's latest cut.
The MSCI Colcap index edged down 0.26% to 2,114.21 points, a shallow correction after gains of more than 50% this year.
Turnover on the local exchange was about COP 102,653 million, roughly 11% below the previous session, a sign that fast money is locking in gains while longer-term investors hold their positions.
Five names still posted strong advances: Bolsa de Valores de Colombia jumped 2.52%, Grupo Bolívar 2.24%, preferred Grupo Sura 2.13%, preferred Corficolombiana 1.72% and ordinary Corficolombiana 1.71%.
On the downside, national oil champion Ecopetrol and preferred Grupo Cibest each fell 1.58%, while preferred Grupo Aval lost 1.38%, Empresa de Energía de Bogotá 0.99% and preferred Davivienda 0.60%.
Analysts saw the moves as healthy rotation out of rate-sensitive and state-linked names, after weeks in which they benefited from global risk-on flows despite concern over a heavier government hand in energy and pensions.
In currency markets, the pes firmed again, with the official TRM at 3,810.99 and spot near 3,803 per dollar in early Friday dealing.
The Fed's 25-basis-point cut pushed the dollar index to just under 98 and kept Colombia's 9.25% policy rate attractive for investors seeking real yield.
Technically, USD/COP is consolidating around 3,800. Traders say any bounce back toward 3,850–3,900 would likely attract fresh selling, while a break below 3,780 could reopen last month's lows near 3,700.
Behind the screens, the same fault lines remain. Investors like the central bank's cautious stance and the private sector's push to deepen capital markets.
They are far less convinced by expansive left-wing agendas that promise more social spending but risk unsettling a recovery built on market confidence.
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