Stock market: why shares of Ecopetrol and other oil companies have fallen – financial sector – economy

Yesterday was another day of losses for the Colombian oil company Ecopetrol. Its shares have fallen sharply, both on the Colombian Stock Exchange (BVC) and listed on the New York Stock Exchange (ADR).

While on the local exchange, the title of the oil company fell by 13.61 percent, accumulating a loss of 27.3 percent from Friday, June 17 to yesterday, when it traded at the end of the day at 2005 pesos, On the Big Apple exchange, the company’s ownership shrinks an additional 6.16 percent, thus completing a 25.28 percent decline in that five-day period.

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And while the accumulated losses on the Colombian stock exchange amounted to 755 pesos, in New York it was 3.3 dollars.

The bad moment that the Colombian oil company is going through in the stock markets is due to the confluence of several factors, andAmong those that count not only the political risks that investors see in the face of the presidential change that the country will witness and the decline in oil prices in global markets, the barrel of Brent crude fell yesterday by 1.44 percent to 110. dollars.but also because the company entered an earlier dividend period.

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Juan David Palin, director of analysis and strategy at Casa de Bolsa, explains that “the share of Ecopetrol has entered the previous dividend period, that is, those who buy the stock today (yesterday Thursday) will not get an extraordinary return from the company. It will distribute. The stock fell by 316 pesos, which is higher than the dividend that the company will distribute of 168 pesos per share. Hence, whoever buys equity will not get this advantage, so he acquires it at a value that reduces the size of the profits, “explains the expert.

The oil company was not the only one whose shares fell yesterday. ExxonMobil posted a 3.1% drop in its NYSE title to $85.21. Chevron shares fell 3.66 percent to $142.43. Shell shares fell even less, falling 1.27 percent to $ 2049.62, while BP shares fell 0.42 percent to $ 381.58.

Stocks go down and the dollar goes up

Latin American stock markets, in general, recorded another negative session yesterday.

BVC recorded the fourth largest drop in the stock market yesterday, out of a group of six positions, down 2.42 percent compared to the previous day’s close.

The largest decline, at least among the countries of the Andean region, was due to the Peruvian stock market, followed by the Chilean stock exchange.

In Colombia, as previously mentioned, the share of Ecopetrol, down 13.61 percent compared to yesterday’s close, was the largest drop among the BVC-listed stocks, as the 36 stocks that are part of the stock basket closed at 27. In negative territory, yesterday Thursday, recorded six Increases in their prices and three ended unchanged.

Other significant declines occurred in the preferred share of Grupo Argos and Cementos Argos, by 6.78 and 5.93 percent, respectively, according to a stock market report.

While stocks continue to fall, the dollar continues to strengthen against the peso.

In fact, The representative market price (TRM) stands at 4,068.75 pesos on Friday, up more than 42.2 pesos from the price on Wednesday of this week.

However, the US currency reached its trading limit at 4,118.4 pesos this Thursday, according to reports from the electronic trading system of the Colombian Stock Exchange (BVC).

Juan Eduardo Nets, chief currency analyst at Credicorp Capital, commented: “We did see a significant drop against the dollar on Wednesday due to the results of the presidential election. The currency reached 4,040 pesos, resisting a bit and falling to 4,077 and 4,012 pesos, which is an area that can be maintained. While new and more accurate announcements are known from the president-elect about the formation of his government.

It also indicates that the current international situation, rising prices in the United States, lower prices of oil and other raw materials such as copper, as well as the perception of the possibility of a recession, are particularly detrimental to the performance of currencies. from emerging economies. That is why a decrease in the price of Chile is associated with a decrease in copper prices, while the Colombian peso is affected by a decrease in the cost of a barrel of oil, a decrease that also affects the Brazilian real.

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