This is how US-traded Colombian stocks behaved in 2022

About seven Colombian companies are listed on the US stock exchange. Some, such as Bancolombia, Grupo Aval, and Ecopetrol, do this through the American Depositary Receipt (ADR) system on the New York Stock Exchange (NYSE). This is a physical title used for a deposit of shares in companies based abroad, sponsored by a U.S. bank and allowing trading.

In the case of Bancolombia, a financial institution owned by Grupo Empresarial Antioqueño (GEA), the share has increased 36.14% so far this year to US$42.67. It has recovered 34.39% in the last 12 months and is up 18.60% in March so far. This behavior was driven by the Gilinski Group’s takeover bids for Sura and Nutresa, as was the case with the Colombian Stock Exchange (BVC).

In fact, in the domestic market, the financial institution’s common stock is up 22.04% to $41,860, up 7.22% so far in March. Last year, it gained 44.49%. As for preferred paper, it rose 23.26% to $29,320.

Regarding Grupo Aval, the stock fell 9.62% to US$4.6. So far, it’s down 13.85% in March and 25.80% in the last 12 months. Similarly, local preference is down 14.72% to $880, while preferential paper is trending downside between $21.24% and $833.

Ecopetrol’s shares benefited as a result of the crisis unfolding in Ukraine, which pushed oil prices to multi-year highs. On Wall Street, government oil shares are up 45.15 percent to $18.61 in 2022, up 15.70 percent so far in March and 47.20 percent in the last 12 months. BVC rose 31.37% to $3,509 this year.

Omar Suárez, head of equity strategy at Casa de Bolsa, stressed that “stocks listed in BVC and New York move in a correlated manner. However, the only different factor is the exchange rate, because if it moves, shares of companies like Ecopetrol will need to be adjusted either here or in the United States.”

Another platform where Colombian companies stand out is the Nasdaq technology exchange. Companies like Tecnoglass, Procaps, Clever Leaves, Flora Growth move there, and Nubank was founded by Paisa businessman David Vélez, if not Colombian.

As for Tecnoglass, its shares are up 4.12% so far this year to $27.6. In the last 12 months, it has grown 127.6% after reaching a maximum of $33.65 at the end of 2021. It has recovered 33.25% so far in March.

CONTRAST

  • Andres DuarteCapital director of Corficolombiana

    “The business of some of these companies is not dependent on what is happening in Colombia because most of their customers and the market they are moving to are in the United States.”

  • Omar SuarezHead of Stock Strategy at Casa de Bolsa

    “The Colombian Stock Exchange (BVC) and New York-traded stocks move in a correlated manner. However, the only factor that makes the difference is the exchange rate.”

“The business of some of these companies is not dependent on those in Colombia because most of their clients and the market they are operating in are in the United States,” said Andrés Duarte, stock director of Corficolombiana.

Barranquieller-based pharmaceutical lab Procaps reached that market at the end of 2019 and has since dropped 14.03% to $8.4 USD. It’s down 13.33% so far this year, moving 5.05% in March and -15.75% in the last 12 months.

Clever Leaves, a Colombian-Canadian cannabis company, was down 9.96% to $2.62. Likewise, it recovered 143.1% in March and fell 76.08% in the last 12 months. Flora Growth, a company of the same origin and focused on the same sector, increased by 18.07% to US$ 2.09 in March, while it increased by 2.45% in March.

Most recently, Nubank, founded in Brazil but co-created by Colombian David Vélez, came to the NYSE in December of last year. It has since dropped 19.51% to $8.26, while it has lost 12.04% so far this year.

Companies such as Grupo Sura, Corficolombiana, Cementos Argos, Grupo Nutresa and Éxito are registered but do not move due to minimal liquidity in the North American market.

Source: Lare Publica

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