Strong decline in the Colombian stock market after the presidential election, Ecopetrol lost more than 10% of its price

file image. A worker works at the Colombia Stock Exchange, in Bogota, Colombia, February 1, 2019. REUTERS / Luisa Gonzalez

After I knew the results of the second round of the presidential elections on Sunday, and what did they give Gustavo Petro as winner With 11.2 million votes, equivalent to 50.44% of all votes cast, this Tuesday Shares in Colombia fell during the first part of the trading day.

As for the decline in the main index of the domestic stock market was MSCI ColcapIt was 5.4% in the early hours of the day compared to Friday, while it is down 2.5% so far this year.

The The Colombian Stock Exchange (BVC) opened down 5.42% Up to 1,378.10 points. Driving this behavior is Ecopetrol, which is down 11.20% to $2,451. In the New York market, the shares of the state-owned oil company also shrank.

Shares that continued on the list were companies such as Enka de Colombia, down 9.09%, followed by Corficolombiana Preference, down 8.84%. Electrical interconnection SA by 7.88%. Grupo Aval Preference by 7.11%; Promigas by 6.82%; Cementos Argos Preferential at 6.16%; Grupo Energía Bogotá 5.66%; Preferential Bancolumbia, 5.51%, Silesia 5.21%.

Similarly, with the opening of markets in New York Stock Exchange (NYSE) It was clear that the shares of Colombian companies in the United States fell. Specifically, Ecopetrol lost 10%, Bancolombia 6.67% and Grupo Aval 8.98%. Meanwhile, the Dow Jones Index rose 1.33% and the S&P 500 Index rose 0.22%.

In the following days, behavior will depend on the signals provided by the new government and additional pressures cannot be ruled out. However, we expect an increase in populist proposals in the future given the current political and social context, while the Petro government’s plan clearly aims to increase the role of the state in the economy and erode the oil sector. Thus, financial accounts remain our main concern, which should play a role in the markets‘,” he reads the Credicorp Capital document.

By agreement Director of Analysis and Strategy at Casa de Bolsa, Juan David PalinThe election results explain the decline in stocks and not in the behavior of commodities, as today they present stable behavior in the case of oil and gold.“, pointed out.

In addition, many analysts believe that this will be decisive Gustavo Petro reveals the name of his ministers In order to ensure confidence for investors and markets.

The issue of the value of the dollar in the country and in Internet searches was raised after the Colombian left was declared the winner at the polls. However, as of Tuesday, it was possible to verify what was indicated in the past days, as there were no foreign exchange negotiations on Monday due to a holiday in Colombia.

After multiple rumors on June 21, the value of The Colombian dollar reported multiple differences It shows great fluctuations. In the early hours of the day, it was positioned at $4,098, meaning it opened with a strong increase of $193, nearly 4% above the $3,905 it closed last Friday, the last trading day, before the holiday. vacation for this. Monday in the country.

After a few hours, the value drops to $4,016, and depending on the volatile behavior of the coin, it may drop. But it’s still so far above $4,000; A price similar to what was achieved in May, when the value of the US currency was affected by the shortage of some raw materials and key products due to the conflict in Ukraine.

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