Colombian Equity Market Players - Appetite of foreign investors and ADR programs fueled local market performance
February 9, 2018 (Investorideas.com Newswire) Foreign investors were the main net buyers (USD 74 mn), followed by ADR programs (USD 31 mn). On the other hand, the largest net sellers were local retail (71 mn) and corporate agents (USD35 mn), while local Pension Funds registered the first net selling position since November 2016. In all, the increase of 2.9% on the COLCAP Index was mainly driven by foreign appetite. Indeed, foreign investors focused on Bancolombia common and preferred shares due to the rebalancing of the COLCAP Index, where Bancolombia surpassed the 20% limit. ADR programs were mainly responsible for Ecopetrol movement.
- Foreign investors were the main net buyers (USD 74 mn), followed by ADR programs (USD 31 mn). On the other hand, the largest net sellers were local retail (71 mn) and corporate agents (USD35 mn), while local Pension Funds registered the first net selling position since November 2016. In all, the increase of 2.9% on the COLCAP Index was mainly driven by foreign appetite. Indeed, foreign investors focused on Bancolombia common and preferred shares due to the rebalancing of the COLCAP Index, where Bancolombia surpassed the 20% limit. ADR programs were mainly responsible for Ecopetrol movement.
- During January, ADTV reached COP 138.352 mn and USD 48.34 mn, equivalent to increases of 21.9% and 25.4% y/y, respectively. However, these figures represent decreases of 14.8% m/m in terms of COP and 11.2% m/m in terms of USD. Total traded volume reached COP 2,905,379.58 mn, expanding by 21.9% y/y and decreasing 0.58% m/m, equivalent to USD 1,013.14 mn, increasing 25.2% y/y and increasing 3.7% m/m.
- Foreign investors the main net buyers for second consecutive month. These players registered the largest net buying position for January 2018 with USD 74 mn. Foreign investors were focused on PfBancolombia and Bcolombia with purchases of USD 26.1 mn and USD 14, respectively.
- ADR programs were net buyers for the fourth successive month, this time with USD 31 mn. During January, these players recorded buying positions of USD 29 mn in Ecopetrol and of USD 2.1 mn in PfBancolombia.
- In contrast, local retail investors were the largest net sellers with an outflow of USD 71 mn, the greatest amount since May 2017. They have been in a net selling position for more than a year, and they continued their downward trend in market participation. Specifically, local retail investors were sellers in Ecopetrol and PfBancolombia with sales of USD 32 mn and USD 18 mn, respectively.
- Corporate agents were the second largest net sellers with sales of USD35 million. In particular, they sold USD 16 mn of Ecopetrol and USD 5 mn of Grupo Sura.
- Last but not least, local Pension Funds, after being the largest net buyers during 2017, registered a net selling position of USD 19 mn. The outflow was focused on Bcolombia and PfBancolombia with sales of USD 15 mn and USD 11mn, respectively. These sales contrasted with Ecopetrol purchases of USD 17 mn. It is important to recall that PFs had not registered a selling position since November 2016.
For charts, tables and the full report, see the pdf file
Juan Camilo Dauder
+(574) 2042525 ext. 4155
+(571) 339 4400 ext. 1365
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