THE BVC WITH ONE OF THE BEST PERFORMANCES IN THE REGION
The stock exchange markets of the region are suffering due to the turmoil of the stock exchange markets of the most powerful economies in the world.
The uncertainty in the international markets, the downward pressure on the WTI crude price and the deceleration in the economy of the emerging markets are creating around the world downward trends in the most important stock exchange markets that off course are hitting the stock exchange markets of the emerging countries.
The slowly recovery of the US economy, the economic deceleration of China, India and Brazil, the drop of the international prices of commodities, the falling of the Euro Zone importations and the depreciation of the currencies of the Industrialized Countries are the main factors that are having a negative impact in Latin America.
Even these reasons for the dropping of the indexes of the region, Colombian Stock Exchange Market were one of the least affected markets. The Bovespa Index was the most affected index due to the exposure of the Brazilian economy to the international crisis, and went down 28% in the last quarter of the year. The Mexbol Index which is exposed to the US economy, which presented a deceleration on its recovery, went down by 14.63%. The IGBC was the second less affected with a drop of 12.67% after an increase near the 18% in the year. The IGBC behavior was only surpassed by the performance of the Peruvian Stock Exchange Market, which suffered a drop of 11.79% in the same period than the other indexes.
In Colombia the Euro Crisis is affecting the index but indirectly due to the dropping of the international price of the WTI crude which has a specific gravity of 55% in the BVC (Spanish acronym for Colombian Stock Exchange Market). Even though the expectations generated by the Colombian economy for the last two quarters of the year are positive and the investors have great confidence in the country.