COLOMBIA: Colcap Rises Slightly After Central Bank Decision On Interest Rate

(RTTNews) - Colcap, the main index of the Colombian Stock Exchange, rose slightly (+0.06%) Friday, closing at 1,487.52 points after the central bank's decision to keep unchanged its benchmark interest rate.

Erika Baquero, an analyst at Alianza Valores, noted that the Colcap was marked on the positive ground by the recovery in the banking sector, including Bancolombia.

She said the central bank's decision to keep the rate unchanged would be a relief for consumers, and that would help to improve or maintain the banks' indicators.

Earlier, the Colombian central bank's board of governors decided to keep the country's benchmark interest rate unchanged at 5.25%. According to a statement, the board took into account that, after the rate cuts made throughout the year, some indicators suggest that the real value of the reference interest rate is close to its neutral level, although there is uncertainty about that.

The shares of Avianca (+1.94%), Bancolombia (+0.74%), Banco de Bogotá (+0.70%), Suramericana (+0.50%), and EEB (+0.50%) rose, while Cemargos (-1.68%), ISA (-1.01%), and Davivienda (-0.30%) fell.

The locally traded U.S. dollar closed the day at 2,939.00 Colombian pesos, marking a 0.15% fall. Andrés Fonseca, an analyst at Alianza Valores, said that the greenback lost ground due to the uncertainty generated by the tax reform presented by the Donald Trump's administration.