So now that's out of the way, let's have a closer look at how stocks trade in Colombia and we'll concentrate on the main IGBC index to do so. It's worth mentioning right now that the Bolsa de Valores de Colombia (BVC), does the vast majority of its business in bonds, but even though between 85% and 90% of the money that flows through the BVC is in the debt market we're concentrating on equities today.
Here's a home-made chart that tracks the IGBC index from January 2007 to date (and click on any of the charts in this post to enlarge, by the way).
The IGBC is currently made up of 29 stocks. Here's a list of them all that shows the ticker, the company name and the weighting it has towards the IGBC.
|Ticker||Company||Sector||% weight 3q08|
|SURAMINV||SURAMERICANA DE INVERSIONES S.A.||Investment Holding||10.11|
|PFBCOLOM||BANCOLOM PREF ADR´S||Banking||5.63|
|ISA||INTERCONEXION ELECTRICA S.A. ISA||Energy Infrastructure||5.08|
|FABRICATO||TEXTILES FABRICATO TEJICONDOR S.A||Textiles||4.97|
|COLINVERS||COMPAÑIA COLOMBIANA DE INVERSIONES S.A.||Investment Holding||3.55|
|PAZRIO||ACERIAS PAZ DEL RIO||Construction/Steel||2.65|
|EXITO||ALMACENES EXITO S.A.||Retail||2.49|
|BVC||BOLSA DE VALORES DE COLOMBIA S.A.||Investment Holding||2.03|
|TABLEMAC||TABLEROS Y MADERAS DE CALDAS||Construction/Wood||2.01|
|CHOCOLATES||GRUPO NACIONAL DE CHOCOLATES S.A||Food||1.79|
|CORFICOLCF||CORPORACION FINANCIERA COLOMBIANA||Banking||1.51|
|ETB||EMPRESA DE TELECOMUNICACIONES DE BOGOTA S.A. E.S.P.||Telecoms||1.27|
|INTERBOLSA||INTERBOLSA COMISIONISTA DE BOLSA||Investment Holding||0.91|
|ISAGEN||ISAGEN S.A. E.S.P.||Energy||0.68|
|BOGOTA||BCO. DE BOGOTA||Banking||0.47|
|ENKA||ENKA DE COLOMBIA S.A.||Petrochem/Plastics||0.41|
|PFBCREDITO||BANCO DE CREDITO S.A. HELM FINANCIAL SERVICES||Banking||0.37|
|ODINSA||ORGANIZACION DE INGENIERIA INTERNACIONAL S.A. GRUPO ODINSA||Infrastructure||0.13|
|PFCORFICOL||CORPORACION FINANCIERA COLOMBIANA S.A.||Banking||0.1|
|VALOREM||VALOREM S.A.||Investment Holding||0.08|
|SDCORFIC08||CORPORACION FINANCIERA COLOMBIANA||Banking||0.003|
|SDPFCORF08||CORPORACION FINANCIERA COLOMBIANA||Banking||0.0005|
As we can plainly see above, Ecopetrol is the 800lb gorilla in Colombian investments.
Next comes Suramericana de Inversiones with a 10.11% index weighting.
Next is Bancolombia. Here's the chart for the common stock.....
Next is Interconexion Electrica S.A. (ISA), with 5.08% index weighting.
Another infrastructure company to consider is Argos that has two IGBC listings. The cement listing shown here....
The final example (leaving many out, obviously) is Almacenes Exito S.A. with 2.49% of current weighting.
So that wraps up this quick look at the Colombian IGBC index and a few of its components. This type of post is not meant to provide solid investment advice, but it does serve to introduce the subject and give you a feel for what's on offer in Colombia's capital exchanges. One final thing to keep in mind is the currency forex, because as this final chart shows there has been plenty of volatility in the Colombian Peso recently....
....and any influx of foreign capital will be a currency strengthening influence. Now the capital controls that have been in place for nearly 18 months have been lifted, there will be plenty of foreign money sniffing around the BVC. DYODD, and see if you can pick up a bargain yourself.
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