The international drop in oil prices, added to the uncertainty left by this Sunday’s election day, due to the polarization that exists around the results of the elections both in Congress and in the consultations between parties, led to a sharp drop in Ecopetrol’s shares, and a drop in most shares traded on the Colombian Stock Exchange.
(The effect of elections on markets).
The title of the oil company fell 5.68% and it was traded at a price of $3,207, although its decline reached over 6% on the day.
For Laura Acosta, equity analyst at Acciones & Valores, “What we observe is that this behavior in Ecopetrol’s stock on Monday is in line with the decline in crude oil prices, especially in its Brent reference, due to the fact that tensions between Russia and Ukraine are already easing. . On the other hand, in recent sessions, Ecopetrol’s share was already trading above the market’s target price, so the potential for appreciation was less and less and the market was already expecting these declines. In addition to that, we have the pressures due to the elections this Sunday that could generate even more downward pressure on the listing price.”
(Dollar fell 26 pesos, one day after the elections).
Corficolombiana analysts had also warned of slight negative effects on the market due to the electoral results, which could also be felt in the exchange rate in the coming days.
The action of Canacol Energy had a drop of 2.66% and it was the second most relegated title in the session.
On the other hand, the action that Grupo Aval was the one that rose the most, registering a variation of 3.76% with a price of $1,075.
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