Markets in Colombia: The dollar rose and Ecopetrol shares fell again

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Photo: Freepik

The dollar was set on Wednesday at $4,127.47 by the FSA, which is an increase of $37 compared to the representative market price (TRM) which was $4,089.72 for today’s session.

The recorded opening price was $4,090, and it closed today on the Bloomberg platform at $4,116.19.

The dollar’s behavior goes hand in hand with that of the Colombian Stock Exchange (BVC), which last week suffered three consecutive days of losses and this Wednesday fell again.

For Wednesday, BVC’s Colcap Index is down 2.48%. The worst affected stock was Fabricato, which fell 9.72% to $6.50. The share of Ecopetrol also fell sharply, falling by 4.46%.

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Ecopetrol stock is down 4.46% this Wednesday and settled at $2,273 despite the recovery it made Friday and Tuesday on the Colombian stock exchange after last week’s losses.

Ecopetrol was the worst hit stock in this stock market after the election and saw a double-digit drop (13.61%), and on Friday it recouped half of its losses incurred on Thursday and remained at 6.68%. At the close of trading Tuesday, the stock was up 11.22% to $2,379.

Other stocks also posted big losses, including Mineros which fell by 2.28%, ISA (-3.64%) and Argos (-4.17%).

Experts indicated last week that the electoral impact could be dispelled by new data from Gustavo Petro, especially regarding the proposals of the hydrocarbon sector. Just as it happened. Another factor that will be relevant to the markets is the upcoming Finance Minister’s announcement.

Wall Street ends unevenly, in a market that fears a recession

The New York Stock Exchange ended a highly volatile day on Wednesday without guidance, always concerned about inflation and recession risks.

Near the end of the stock market’s worst quarter since the 1970s, the Dow Jones managed to gain 0.27% to 31,029.31 points, but the Nasdaq Tech Index lost marginally 0.03% to 11,177.89 units, while the S&P 500 lost 0.07% to 3,818.83.

“Investors were lacking in conviction after Tuesday’s slip,” Schwab analysts commented.

Adam Sarhan of 50 Park Investments agreed that the market was “struggling to find direction and most of the good news”.

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“Investors are facing two headwinds: the Federal Reserve, which is more aggressive, and the market trend, which is bearish,” added Sarhan, who expects the companies’ quarterly results to come in mid-July. .

“If this is not the case, we will have to prepare for more victims,” ​​he stressed.

So far, the benchmark Dow Jones Industrial Average is down 14.61% since the start of the year. The Nasdaq lost 28.55% and the S&P 20.04%.

Wells Fargo analysts summed up: “Concerns about slowing growth and persistent inflation continue to hamper the market.”

US GDP contracted somewhat more than reported in the first quarter, with a 1.6% drop in annual projection, a number known after a downward revision of consumer spending.

The latest estimate from the Commerce Department published on Wednesday compares with the -1.5% figure released at the end of May, which is in turn more pessimistic than the 1.4% decline recorded in April.

Gross domestic product is declining on the back of high inflation, deepened by the war in Ukraine, persistent supply chain problems, declining government aid and a resurgence of Covid-19 cases.

Among daily values, homeware store Bed Bath and Beyond, which posted larger-than-expected quarterly losses coupled with lower sales and the resignation of its boss, lost 23.58% to less than $5.

Shares of Carnival Cruises Inc fell 14.18% to $8.86, after a poor rating by Morgan Stanley. The title was worth $26 a year ago. Its fall dragged its competitors Royal Caribbean (-10.26%) and Norwegian Cruise (-9.33%).

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