Daily Colombian Equities Bulletin and Fundamentals 08-30-13
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August 30, 2013 (www.investorideas.com newswire) Markets in the USA closed in a positive territory for the second straight day despite uncertainty over Syria . The main drivers for the day came from the economic front as the 2Q-13 GDP was revised sharply higher from 1.7% to 2.5%. In addition, initial jobless claims fell 6,000 relative to the previous week number and are placed at 331,000. That being said, the S&P 500 climbed 0.20% to, while the Dow Jones gained 0.11%.
LatAm markets continue to show different signals and the region had mixed results. However, we highlight that the COLCAP index finished the day down 0.7% driven by some of the biggest names such as Ecopetrol, Exito, and Cementos Argos.
Going forward, we do not see a clear pattern as the market does not surpass significant levels. That being said, we believe that there are some important levels that investors need to take into account: Resistance around 1,750 and support around 1,700.
On the corporate side, there was an important news that could tomorrow impact the market:
Nutresa: The food company announced that it successfully closed out the acquisition of Tresmontes Lucchetti. It is worth mentioning that total amount for the operation was a bit lower than initially expected (USD 739.3 mm vs USD 758 mm). As a result, the EV/EBITDA multiple for the transaction decreased from 12.6x to 12.3x.
Nutresa will start consolidating Tresmontes in September and therefore financial results for 2013 will boost. Therefore, we see an upside potential for the company's shares in the short term. Today, the stock climbed 1.48% and we expect a positive reaction from the market in tomorrow's session.
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