Seven Colombian companies are listed on the US stock market. Some, including Bancolombia, Grupo Aval, and Ecopetrol, use the American Depositary Receipt system on the New York Stock Exchange. A physical share certificate backs these deposits, sponsored by a US bank, and it enables trading in foreign-listed firms on a major exchange.
For Bancolombia, a financial group owned by Grupo Empresarial Antioqueño, the share has risen 36.14 percent this year to 42.67 US dollars. Over the last twelve months the gain stands at 34.39 percent, and it has advanced 18.60 percent in March to date. The rally aligns with the Gilinski Group increasing its takeover bids for Sura and Nutresa, mirroring moves seen on the Colombian Stock Exchange.
In the domestic market, Bancolombia’s common stock is up 22.04 percent to 41,860 pesos, with a 7.22 percent rise so far in March. Last year brought a 44.49 percent gain. Preferred stock climbed 23.26 percent to 29,320 pesos.
Grupo Aval shares declined 9.62 percent to 4.60 US dollars. So far this month they are down 13.85 percent and the last twelve months show a 25.80 percent drop. Local preferred stock fell 14.72 percent to 880 pesos, while the preferred class oscillated between 21.24 percent and 833 pesos in recent sessions.
Ecopetrol benefited from the energy market dynamics caused by the Ukraine crisis, which pushed oil prices higher. On Wall Street, government oil shares advanced 45.15 percent to 18.61 dollars in 2022, with a 15.70 percent gain so far in March and 47.20 percent over the last year. The BVC rose 31.37 percent this year to 3,509 pesos per share.
Omar Suárez, head of equity strategy at Casa de Bolsa, noted that stocks listed on both BVC and NYSE move in a linked fashion. The only differentiating variable is the exchange rate; when it shifts, shares of Ecopetrol must be adjusted either on the local market or in the United States.
Another venue where Colombian companies stand out is the Nasdaq technology exchange. Companies such as Tecnoglass, Procaps, Clever Leaves, and Flora Growth trade there, and Nubank began with a Brazilian founder who is sometimes described as Colombian by some sources.
Tecnoglass shares rose 4.12 percent this year to 27.60 dollars. Over the last twelve months they surged 127.6 percent after peaking at 33.65 dollars at the end of 2021. In March they have recovered 33.25 percent so far.
CONTRAST
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Andres Duarte Capital director of Corficolombiana
The core business of several of these firms does not hinge on events in Colombia. Their customer base and markets largely lie in the United States.
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Omar Suarez Head of Stock Strategy at Casa de Bolsa
Stocks on the BVC and those traded in New York share a common movement. The exchange rate is the key factor that creates the difference between the two markets.
The perspective from Corficolombiana echoes that many of these enterprises serve primarily US markets rather than domestic ones, where most clients and operations reside.
Procaps, a pharmaceutical group based in Barranquilla, reached the US market in late 2019. Since then it has fallen 14.03 percent to 8.40 dollars. It is down 13.33 percent this year, sliding 5.05 percent in March and 15.75 percent over the last year.
Clever Leaves, a Colombian Canadian cannabis company, declined 9.96 percent to 2.62 dollars. It rebounded 143.1 percent in March but still posted a 76.08 percent drop over the last twelve months. Flora Growth, another company with a similar profile and sector focus, rose 18.07 percent to 2.09 dollars in March and gained 2.45 percent for the month overall.
Most recently, Nubank, founded by Brazilian entrepreneur David Vélez and connected to Colombia by his roots, joined the NYSE in December of the previous year. The stock has fallen 19.51 percent to 8.26 dollars, with a 12.04 percent dip for the year to date.
Conglomerates such as Grupo Sura, Corficolombiana, Cementos Argos, Grupo Nutresa, and Éxito are listed but show limited liquidity in North American markets, which dampens trading activity and price movements.