Colombia Stock Exchange
|Colombia Stock Exchange (Bolsa de Valores de Colombia)|
|Key People||Chief Executive Juan Pablo Cordoba|
Template:Infobox Midpage Need Sponsor The Colombia Stock Exchange (CSE), known in Spanish as the Bolsa de Valores de Colombia (BVC), was formed eight years from a union of three separate regional exchanges and is a now one of the world's top trading centers for fixed income securities. The CSE's main stock market benchmark, the IGBC Index, recovered slightly in Q1 2009 after taking a pounding in 2008's financial crisis.
The Colombia Stock Exchange was formed in July 2001 through a merger of the country's three regional exchanges: Bolsa de Bogotá, Bolsa de Medellín and the Bolsa de Occidente in Cali. Although it's called a stock exchange ('bolsa' in Spanish), between 85% and 90% of the CSE's trading is actually conducted in the bond market, where it ranks as the world's fourth-largest market.
Just prior to September 2008's global credit crisis, CSE announced it would start offering derivatives trading via the Nasdaq OM Group electronic trading platform. The move is part of a strategy for the CSE to offer itself as a Latin trading alternative to the region's big dogs, Brazil's BM&F Bovespa and the Mexican Stock Exchange.
The Colombia Stock Exchange's IGBC Index serves as the overall stock market benchmark and is a capitalization-weighted indicator of Colombia's highest-cap, most liquid stocks. The exchange's other main index product, the COLCAP, measures the CSE's 20 most liquid stocks but limits individual equity weights to 20%, compared to the IGBS where a single stock, Ecopetrol, is more than half the index value.
CSE Chief Executive Juan Pablo Cordoba has held the post since March 2005 after a stint as director of Colombia's deposit insurance fund. He worked in Washington, D.C. with the International Monetary Fund (IMF) from 1999 until 2002 and earlier obtained a Ph.D. in economics from the University of Pennsylvania. In a mid-2008 interview with Securities Industry News Cordoba outlined the CSE's competitive strategy of investing in new electronic trading technology to become an advanced global trading market. Cordoba also told SI News: "We...expect the derivatives market will bring new energy to the Colombian capital markets."
Although trading on the CSE recovered somewhat after the IGBC Index lost almost 30% of its value in 2008, analysts don't expect the rally to continue through 2009 as more gloomy local revenue results are expected. Market leader EcoPetrol is predicted to post big profit declines in 2009, unsettling the overall Colombian equities market.
- Bolsa de Valores de Colombia. Wikipedia.
- The Colombia stock market and IGBC index: An overview. Incakolanews.com.
- IGBC. Bloomberg.
- Colombia Stocks May ‘Sustain Valuation,’ Bolsa’s Cordoba Says. Bloomberg.
- Colombia Stock Exchange Wants to Be a Latin American Alternative. Securities Industry News.
- Colombia 2Q Stock Outlook: Weak Earnings To Crimp Recovery. Dow Jones.