Daily Colombian Equities Bulletin and Fundamentals 09-04-13
Ideas get bigger when you share them...
September 5, 2013 (www.investorideas.com newswire) USA markets finished strong during the day and recorded two consecutive sessions with gains. S&P 500 climbed 0.81% while the Dow Jones advanced 0.65%. Gains were driven by an optimistic Beige Book, which showed that the American economy expanded at a modest to moderate pace during July and August. That being said, the probability that the FED initiates the tapering anytime soon has increased. However, we believe one of the main drivers for this process will be release on Friday when the nonfarm payrolls are reported.
In the local front, The COLCAP index had a positive day (+0.53%) and finished at 1,746.9, near our key resistance level at 1,750. However, it is worth mentioning that volumes were not strong during today´s session, which does not support the positive trend. Going forward, we expect crucial days coming up as the market is facing again a rough resistance level (1,750) and the 200 day moving average. If the market is able to surpass this level, we expect to have a short term positive rally on the local market. Finally, we highlight that the main risk to our short term view comes from the volatility that foreign markets may add towards the end of this week.
On the corporate side, there were several news that we want to highlight:
Isagen: Moody´s released a statement where it changes the company´s perspective from stable to negative. However, the credit agency maintained Isagen´s rating in Baa3.
Avianca: In relation to the news published by the media, the Company clarifies that: the Holding Company and its subsidiary Aerovias del Continente Americano S.A. Avianca, are not working on issuing bonds in the capital markets.
Avianca´s shares had a small loss during the day (-0.13%); however, the stock closed below COP 4,000/share (key support level).
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