The takeover bids (takeover bids) have generated an increase in the value of Grupo Sura and Nutresa in the Colombian Stock Exchange (market capitalization), but this has not been enough to avoid the strong depreciation that is observed throughout the market and that is going hand in hand with the bad times that equities are experiencing in Colombia.
(More investment alternatives, task of the country’s stock market).
Only this year the total number of companies that have their shares listed in the Colombian Stock Exchange have registered a drop in value or market capitalization of 13.5%a figure similar to that recorded by the main stock index MSCI Colcap.
At the end of 2021, the value of all companies on the Stock Exchange was $370 billion and as of March 22, it was $320 billion.
In November, when talk of the takeover bids that the Grupo Gilinski made by Nutresa and Grupo Sura the joint value of the titles was $369 billion, which means that with the start of the first two takeover bids, the market gained value by $1 billion.
The general market situation in recent years has led to all companies losing value on the Colombian Stock Exchange.
In 2017 the market capitalization amounted to $364 billion, while in 2018 it fell to $340 billion, with a fall of 6.6%.
(Integration of stock exchanges in Colombia, Chile and Peru would be ready in 2024).
But in 2019 there was a rebound in the value of companies on the stock market with $436 billion and the increase compared to the previous year was 28.2%. The situation in 2020, the year the pandemic began, it worsened again as the value fell to $365 billion and a decrease in the value of the companies, according to their share price, of 16.2%.
By 2021, the situation presented a slight improvement, with a total value of companies on the Stock Exchange of $370 billion, which represented an increase of just 1.3%.
Nutresa is the main food producing conglomerate in Colombia, of which brands such as Noel are part.
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During the year to date (until September 22) the loss of value of companies is $50 billion.
According to Edgar Jiménez, professor of Finance at the Jorge Tadeo Lozano University, the stock market capitalization has fallen due to the strong devaluations that have occurred in Colombian shares this year.
In this sense, he said, Ecopetrol has a strong drag effect due to its size and the drop of more than 20% in the price of its title.
The analyst and academic also considers that with the good news of the takeover bids that stimulated the market, many thought that those resources were going to be reinvested in the equity market, but what is more likely is that those resources have gone to fixed income, which due to the increase in interest rates by the Banco de la República, are more attractive.
To the subject, according to Jiménez, we must add that issuers have also left and investment operations are decreasing.
That is why the feeling of the shareholders is to expect a change in trend and “be patient because the truth is that behind that there are good opportunities, with companies that are undervalued”.
An analyst considered that other markets such as the United States appreciated while in Colombia “we did not rise or we remained stable and the change in the fall we have had a strong correlation.
(Only 4 shares of the Colombian stock market are saved from the general fall).
He pointed out that “Better management is required because liquidity is very low, people can hardly sell and outside they do not see a market to enter.”
He says that a few years ago the average trading was $100 billion a day and now it is not even half that.
Nutresa, with the greatest benefit
Nutresa will have a market value of $30.2 billion and will be in second place, behind Ecopetrol, which has a value of $93 billion.
Next is Interconexión Eléctrica (ISA) with $19.6 billion, Grupo Energía Bogotá with $17.9 billion and Grupo Sura with $17.1 billion. Bancolombia would be the second most valuable with $30.9 billion, but it has a common share worth $16.9 billion and preferred $13.9 billion.
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