Uribe Ruling Rallies Markets

Colombian markets climbed after a Constitutional Court ruling opened the way for President Alvaro Uribe to run for a second four-year term in 2006. The IGBC stock index opened with a 3% rally but profit-taking quickly drove prices down. The IGBC closed up 1.13% for the day. Yields on the government’s benchmark 2014 bond opened at 8.32%, close to a historic low, but picked up to end the day at 8.67%. Merrill Lynch raised its recommendation on Colombian debt to market weight from underweight.