Around 9:30 am, the Msci Colcap stock index rose 0.63% to break the 1,600 point barrier. This meter, which takes into account the movement of the most liquid shares of the Colombian Stock Exchange (BVC), dropped slightly to 1,590 points yesterday.
It’s up 13.57% so far this year, up 4.88% so far in March. Between November and February, the indicator grew 10.07% with the development of OPAs, while it increased 8.92% in January and fell 0.59% in February.
The top-growing stock was ConConcreto, which rose 1.81% to $312.50. Éxito, which rallied this variant 1.66% to $17,790; Ecopetrol from $1.44% to $3,586; Grupo Argos, 1.11%, at $13,680; Bancolombia is $1.10% to $39,430 and the iShares ETF is 0.68% to $16,200.
The species that dropped the most was Corficolombiana with -0.35% to $28,100; preferential Grupo Argos between -0.32% and $9,330; Electric Interconnection SA with -0.13% at $23,870 and Grupo Energía Bogotá with -0.04% at $2,480.
Five central axes influenced the movement of the stock market: legislative and presidential elections, the presentation of a new round of takeover bids by Sura and Nutresa, the financial results of issuers, the development of international tensions, in part due to the occupation. Russia’s move to Ukraine and high oil prices.
In the first case, the market closely followed political campaigns woven into economic uncertainty due to the direction the country’s finances might take, including the dynamics of foreign and local investment.
“What we’ve seen in the stock market over the past two weeks is that the index has not deviated by more than 1,500 points, which is due to a sense of risk aversion and indecision. In theory, this would be negative for the market. Valeria Álvarez, Variable Income analyst at Itaú Comisionista de Bolsa, “is much more concentrated on the left. was that we had a Senate,” he said.
Similarly, the order by the Colombian Financial Inspectorate (SFC) to suspend the trading of Nutresa and Sura shares for the third time since November 2021 will continue to inject liquidity into the market. However, for Arnoldo Casas, Director of Investments at Credicorp Capital, “the contribution of bids is becoming increasingly marginal.”
Third, the financial results of BVC issuers will be part of a catalyst for share buyers amongst higher returns due to good profits recorded by companies after a 2021 when GDP grows by 10.6%.
Additionally, the conflict and international crisis caused by Russia’s invasion of Ukraine led to widespread uncertainty that hit the stock markets with continued volatility.
A day after trading began, global equities and stock futures fell on Thursday, while bonds and oil rose. The S&P 500 and Nasdaq 100 contracts fell about 1.7% and 2.3% respectively, indicating that the tech-heavy latter is facing a bear market. The Stoxx 600 European Index lost 2.5% and Asian stocks fell to their lowest level since 2020. Russian stocks posted their biggest drop after the suspension of trading.
Oil prices are added to the above. “The inflationary effect of oil and natural gas fluctuations is clear. Inflation will be more severe. Edward Park, chief investment officer at British investment firm Brooks Macdonald, said interest rates would be pushed higher by central banks worried about inflation, which would be bad for growth.
According to Casas de Credicorp Capital, at these prices, “the next biggest contribution will come from Ecopetrol, as the stock has not risen enough due to the fear of the elections.”
Source: Lare Publica