Daily Colombian Equities Bulletin and Fundamentals 08-29-13
Ideas get bigger when you share them...
August 29, 2013 (www.investorideas.com newswire) Markets continued to focus on Syria and a potential US military action in that country. That being said, the US stock market finished positive for the day led by the energy sector as WTI climbed even above USD 110/barrel. The S&P 500 gained 0.27%, while the Dow Jones increased 0.33%. On the other hand, the COLCAP index had a strong rally during the day (+1.16%) and became an outlier in the region as most LatAm markets fell. We highlight that there were strong volumes in the local market (COP 201,745 mm or USD 104.1 mm), which are above comapared to the year's average (COP 172,965 mm or USD 91.3 mm).
The local market's performance surprised us today on the positive side and the level of 1,720 points acted as a resistance. As a result, the short term trend could be positive and the index can go towards 1,750 points.
On the corporate side, there were several news that had an impact on individual stocks:
Ecopetrol: The oil & gas company released successful results from its bond auction. The amount granted to investors reached COP 900,000 mm, while demand exceeded 3.2 times the value initially set as the base amount. Ecopetrol will use the proceeds to finance its CAPEX. We highlight the appetite that investors had on the auction, which supports our positive view on the company for the long term.
Shares went up 2.17% during the day, however, we believe the oil spike was the main driver for the stock. Finally, we believe there is an additional upside in the upcoming weeks as oil prices remain high and financial results could improve in the second half of the year.
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