Category: Equity

Bancolombia, Colombia’s largest financial entity, has taken over at the top of the general price index of stocks (IGBC) of the Colombian Securities Exchange (BVC). Bancolombia will have the largest weighting of the 29 stocks in the index for the period until September (16.36%), taking the place of Suramericana de Inversiones (Suramerinv), which had reigned supreme for the past 18 months, but whose weighting now falls from 14.48% to 13.42%. Of the 29 companies that now comprise the IGBC, 10 – including Bancolombia – belong to the GEA conglomerate, accounting for 67% of the index.

It was another grim day of trading on the Colombian stock exchange Tuesday with several stocks suspended during the course of the day and some losing more than 17% of their value. Although the IGBC had fallen overall only 8.73% by close of play, trading was on the verge of being suspended throughout the day, as it neared the 10% fall which halted dealing on Monday. Across the region stocks continued to slide: Brazil’s Bovespa fell 2.1%, while Mexico’s BMV dropped 2%.

Lima’s general stock index (IGBVL) rose 4.04% Monday morning, reaching record highs, on the news that former president Alan García had clinched victory from nationalist Ollanta Humala. Meanwhile, the Peruvian currency, the nuevo sol, strengthened 0.82% against the dollar to levels not seen since the beginning of 1999. With 92.5% of the second-round presidential ballot counted, Alan García of Peru’s center-left political party, APRA, had won 53.20% of the votes against 46.79% polled by Humala. The markets were clearly pleased and relieved that the votes of the middle class and business community won out against the populist choice.

São Paulo’s stock exchange, Bovespa, is considering launching an IPO of its shares next year. Bovespa is Latin America’s largest stock exchange and the IPO would allow the exchange to invest and compete with exchanges in the US and Europe where many Brazilian companies are listed.

Brazilian financial group Brascan is to launch an IPO via Bovespa’s new market. Credit Suisse and UBS are coordinating the sale. Grupo Brascan owns a bank, an insurance brokerage company and has holdings in agribusiness, forestry, mining, energy, construction, and real estate.

Suez Energy Andino, the Chilean subsidiary of French utilities group Suez, is to offer the remaining stock that it holds in local power company Colbún on the Santiago Stock Exchange. Last week Suez sold a 9.5% stake in Colbún to industrial conglomerate Grupo Angelini for almost $223 million; it holds a further 9.5% of the company’s stock.

Mexico’s second-largest cable company Cablemás cancelled its IPO after failing to get investors interested at the right price, according to the company. The rise in US interest rates last week put a dampener on emerging markets and saw stock markets throughout Latin America take a tumble. Cablemás had been hoping to raise over $200 million from the offering.

Brazilian sugar-cane processor and ethanol producer Cosan is likely to issue ADRs on the New York Stock Exchange within the next 18-24 months, says the company. Surging international oil prices have boosted the demand for ethanol, the sugar-based alternative energy source widely used in Brazil, and has encouraged the company to push forward with expansion plans. Cosan raised $450 million at the beginning of the year via the sale of perpetual bonds.

Peruvian electricity distributor Edelnor is to sell three- and seven-year local-currency bonds worth $4.6 million (15 million soles) via the Lima Stock Exchange today, Friday. The offering was structured by Banco Continental.

Brazilian low-cost airline Gol is to sell $12.5 million of preferred shares in the form of ADS on the New York Stock Exchange as well as in Brazil. The share sale will comprise $2.5 million via a primary offering and $10 million via a secondary offering. As well as the share offering, Gol will be also be hoping to place $115 million of 20-year convertible bonds.