Colombia's IGBC Index
Lifted By Ecopetrol; Peso Weakens
BOGOTA (Dow Jones) - Colombia's benchmark
IGBC stock index gained 0.21% to close at
11,621.04 points, led by state-controlled
oil firm Ecopetrol, which rose 1.6% to
COP2,540 ($1.32) on speculation that its
dividend will be higher than investors had
expected when it is announced in March.
"There are rumors in the market that the
dividend might not be as low as the market
was predicting," said Daniel Velandia, an
analyst with local brokerage Ultrabursatiles.
"There is no specific news, but in this
market these types of rumors carry a lot of
weight."
The breaching of the COP2,500 resistance
level had caused some technical buying,
Velandia added.
Ecopetrol is by far Colombia's largest
company, with a 20.85% weighting on the IGBC
index.
The market is likely to remain stable in a
11,000-12,000 point range in the short-term,
as pension funds are close the upper limit
of 40% that Colombia's market regulator
allows them to invest in stocks, Velandia
said.
"Pension funds are close to the limits of
what they can invest in shares," Velandia
said. "These are major players who drove the
market up so much in 2009. They don't have
so much room to maneuver, and private
investors don't have the same weight,"
Velandia added.
The Colombian peso weakened to COP1,923
against the dollar, from COP1,919 on Monday,
as poor business confidence data from
Germany caused the U.S. currency to gain
ground.
The yield on Colombia's benchmark
peso-denominated bond maturing in 2020 fell
to 9.125%, from 9.150% at Monday's close.
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