Colombian stock market, with the worst performance in the region

While in the first semester the main stock indices in the region registered increases such as 7.6% in the case of the São Paulo Stock Exchange, 10% in Santiago, 10% in Mexico, 4.68% in Lima and not to mention the Nasdaq, with 32%, the MSCI Colcap of the Colombian Stock Exchange collapsed 12%.

In addition, with the exception of the first half of 2020, which, due to the pandemic, registered a recession almost worldwide, The first half of this year in the Colombian market is one of the worst performing in seven years.

(Chile’s economic activity decreased to 2.2%).

As a particular fact, 31 shares registered falls in their valuations in the first six months of the yearand among them 12 had higher collapses in their price than the fall in the value of the index and 10 titles rose in price.

On the other hand, during the last year and a half there has been less liquidity in the market, a factor that has coincided with the increase in interest rates, which directs investor preferences towards fixed-income securities, such as CDTs and by eight takeover bids by the Gilinski Group for Grupo Nutres and Grupo Sura.

(‘In Colombia there is energy until 2027 to cover the demand’: XM).

In any case, analysts consulted also attribute part of this bad behavior to political uncertainty with the Government, as well as with the reforms presented to Congress, especially with what the tax approved in the second half of 2022 is generating for the financial system and the effects that the pension reform may cause.

However, given the bad moment for the stock market, There are those who say that these bad prices, which do not correspond to the results of the companies, which have not been bad, it is good to have titlessince the markets never remain falling, nor are they rising, and there are always situations that can be considered breaking points.

That’s how he considers it Édgar Jiménez, Professor of Finance at the Jorge Tadeo Lozano Universitywho asserts that “The figures are not good, but it is worth having the shares offset the bad prices with the dividends declared and whose profitability was an average of 10%, which is compensation, in quotes, for the devaluations of this semester”.

(Anla evaluates two energy projects in La Guajira).

The academic values ​​the operations carried out by the Gilinski Group in recent months and said that the Colombian market is full of opportunities and this was reported by agents of the Chilean market who are analyzing the indicators of Colombian paper in anticipation of the integration of the Chilean, Colombian and Peruvian stock markets.

Jiménez says that the current slump in the Colombian stock market has been going on for a little over a decade, but remember that between 2003 and 2006 there was a price boom on the stock market.

(Health system costs for chronic diseases will rise 40%).

Wilson Tovar, manager of Economic Research at Acciones & Valores says that the most important framework is that the bag distances itself from others “due to the uncertainty of the government reforms, especially the pension due to the existence of future funds and the destination of the resources of their savers and that slows down investor sentiment”.

He adds that the assets eligible to invest are also continuing to decrease “and when many see interest in the technological or artificial intelligence sector, in Colombia there is nothing of these segments and that is why there are investors who jump to other countries to look for those alternatives“.

The dollar in the first semester fell $619, with which the revaluation of the peso was 13.15%, but only in June was it 6.1%, which left the currency as the one that advanced the most against the dollar among the emerging economies, followed by the South African rand and the Brazilian real.

(First semester, with marked symptoms of deceleration).

Arnoldo Casas, Director of Investments and Asset Management at Credicorp CapitaHe says that the global weakness of the dollar for several months was added to local uncertainty, which managed to push the exchange rate above $5,000, but he assures that a new downward pressure could come up to a figure close to $3,800 a end of the year.

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