Lunes, 23 de enero de 2017

| 2009/11/13 00:00

Colombia to face sell-off if Uribe doesn't run

Nov 13--Colombian stocks and bonds will fall if market-friendly President Alvaro Uribe is barred by the courts from running for a third term next year, a ruling that would upset investors but create buying opportunities.

Colombia to face sell-off if Uribe doesn't run

The conservative leader is admired by voters and market players for his U.S.-backed crackdown on Marxist rebels.

If the courts block his bid for a second re-election, investors would fret at least briefly about policy continuity and take profits on stocks and bonds that have risen this year on increased global risk appetite.

"Colombia is not a country play. It's an Uribe play," said Walter Molano, analyst at BCP Securities in Connecticut.

"Most investors see his re-election as a foregone conclusion. If they wake up to news one morning that Uribe will not be a candidate, there could be a big sell-off in Colombian financial assets," Molano said.

However, the sell-off could be short lived as investors shift focus to Colombia's list of alternative presidential candidates, most of whose policies barely differ from Uribe's.
Read more here.
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