Colombia's benchmark COLCAP index closed 0.84% higher on Tuesday, extending gains after a mixed morning session.
The index, which tracks the 20 most liquid stocks on the Colombian Stock Exchange, rose to 1,450.21 points by the close, up from an intraday low of 1,435.68. Trading volume totaled 1.2 million shares, below the 30-day average of 1.5 million.
Blue-chip stocks led the advance, with Ecopetrol, Bancolombia and Grupo Sura contributing the most to the gains. Ecopetrol, the state-controlled oil company, rose 1.7% following a 2.1% increase in Brent crude prices overnight. Bancolombia, the country's largest bank by assets, added 1.2% as investor sentiment improved on expectations of stable credit growth. Grupo Sura, the financial conglomerate, gained 0.9% amid broader sector optimism.
The peso-denominated index's performance contrasted with regional peers, as Brazil's Bovespa and Mexico's IPC ended marginally lower. Analysts attributed the outperformance to domestic factors, including stable macroeconomic conditions and reduced concerns over political risk following recent policy clarity from the government.
Foreign investors accounted for 42% of total trading volume, slightly below the weekly average of 45%. Local institutional investors, including pension funds, remained net buyers, supporting the market's upward momentum.
The COLCAP's 10-day moving average stands at 1,442.34, suggesting a short-term uptrend. Technical indicators point to mild overbought conditions, though no major reversal signals have emerged.
The index has gained 3.2% over the past month and is up 1.8% year-to-date, outperforming most Latin American benchmarks in the same period.
