Daily Colombian Equities Bulletin and Fundamentals 3-27-14
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March 28, 2014 (www.investorideas.com newswire) The Colcap index advanced for third day in a row and accumulates a weekly gain of 3.4% and 9.4% so far this month, which could be one of the best months since September 2009. So far this year the Colcap has advanced 3.58% and today´s close (1,663) is the highest since November 2013. A medium term downward trend could be erased, if the 1,700 level is broken in the next days. However, we could expect a pause in this rally, as we see some market prices are getting close to our target prices. Next month local companies will begin to release theirs 1Q14 results, which should be crucial to maintain or not the current rally. The MSCI Emerging Markets Index increased 0.8%, amid the advance of 3.5% in the Bovespa Index, the highest intraday gain since September.
Latam markets were positive as Bovespa in Brazil increased 3.50% and Chilean IPSA index increased 1.22%. The local COLCAP index closed at 1663.84 pts., equivalent to a 1.08% increase; the total traded volume reached COP 243,069 million (~124 USD MM). The best performers were Carvajal Empaques (+15.01%), Enka (+5.82%) and Valorem (+5.45%). On the other hand, the worst performers were Fabricato (-5.88%), Canacol (-1.15%) and PfGrupoSura (-0.76%). The most traded shares today were Ecopetrol, Celsia and PfBancolombia.
EEB's general shareholders meeting approved the profit distribution project, which included paying a dividend of COP 64.32/share, which represents an increase of 46.3% YoY and a dividend yield of 4.02%. This will be payable in three installments of COP 21.44/share on May 27, June 26 and November 27. Constructora Conconcreto's general shareholders meeting approved the proposal to pay a dividend in cash in two equal installments on April 15 and December 15 of COP 22/share, equivalent to a dividend yield of 1.55%. Construcciones El Condor's general shareholders meeting approved an annual dividend of COP 33/share, payable in cash in three installments of COP 11/share on April 11, July 18 and November 18. This dividend corresponds to a dividend yield of 2.73%. ETB's general shareholders meeting approved the distribution of an ordinary dividend of COP 17.38/share, equivalent to a dividend yield of 3.99% which will be pay on June 27 for minority shareholders and on March 13, 2015 for the majority shareholder. Moreover, the Major of Bogota, Rafael Pardo, said that a possible share issue was not under the plans of the Company. Odinsa's general shareholders meeting approved an ordinary dividend in shares of COP 185/share, payable on April 23 and an ordinary dividend payable in cash in two equal installments of COP 220/share on April 23 and June 18.
Avianca Holdings informed that during January and February 2014, the holding transported 4 million passengers, an increase of 2.4% YoY. On February, Avianca Holdings subsidiaries mobilized more than 1.9 million passengers 2.3% more than the same month in 2013. Fedesarrollo's Survey of Business Opinion (EOE) revealed that the Industrial Confidence Index (ICI) reached its highest level since mid-2012 to 5.8%. Moreover, the Business Confidence Index (ICCO) stood at 21.9%, which is below the 24% recorded on January. International News
In the US, markets were negative as the S&P 500 decreased 0.19% and the DJIA decreased 0.03%.
In the US, the third revision of the 4Q13 GDP was 2.6% QoQ, lower than expected by analysts (2.7%). On the other hand, personal consumption for the same period was higher than expected (3.3% vs. 2.7%). Initial jobless claims for the week ending on March 22 were 311K, lower than expected (323K) and inferior from the revised figure from the week ending on March 15 (321K).
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