Colombia’s COLCAP Extends Rally Amid Global Trade Signals

Colombia’s COLCAP index rose 0.39% to 1,648.51 points on May 6, marking a fresh one-month high. Investors pushed the benchmark higher across Industrials, Services and Agriculture, reflecting growing confidence in domestic equities.

Grupo Argos pref shares led gains with a 2.18% jump to 16,880 pesos. Canacol Energy climbed 1.10% to 9,200 pesos, while Corporacion Financiera Colombiana added 1.04% to close at 17,480 pesos.

Empresa de Energia de Bogota and Davivienda also rose, gaining 0.97% and 0.85% respectively. Energy giant Ecopetrol weighed on the market, tumbling 2.31% to 1,695 pesos after it reported a 22% drop in first-quarter net profit.

Cementos Argos fell 1.31% to 10,580 pesos, Bancolombia preferred lost 1.23% to 43,460 pesos, Grupo Sura slipped 0.98% and Avianca declined 0.85%. Trading volumes climbed 8% as average daily turnover picked up across major names.

EPFR data showed Latin America equity funds recorded their largest inflow in 21 months, signaling renewed foreign appetite for Colombian stocks. Market breadth favored advancers by roughly three to one.

Meanwhile, U.S. futures firmed and the dollar gained after Beijing signaled openness to tariff talks. “To maintain upward momentum in stocks, we require actual deals to be announced,” said Peter Skovgaard, senior strategist at Skovgaard Bank.

Technical Breakout Amid Mixed Fundamentals

Asian markets closed mixed, with China’s CSI 300 and Hong Kong’s Hang Seng each up about 1%, while Japan remained on holiday. Ecopetrol’s results underscored headwinds from lower Brent crude and tariff-related demand weakness.

The company reported Q1 sales of 31.37 trillion pesos and EBITDA of 13.26 trillion pesos, down 6.9% year-on-year. CEO Ricardo Roa noted that uncertainties around Venezuelan licenses added to pressure on oil prices.

Technically, the COLCAP closed above its 100- and 200-hour simple moving averages, pointing to sustained momentum. The index also broke above its Ichimoku cloud, with the Tenkan-Sen crossing above the Kijun-Sen.

However, the RSI sits near neutral at 47, while the Stochastic RSI shows overbought readings and the MACD remains slightly negative, suggesting measured gains ahead.

Compared with regional peers, Colombia outperformed Mexico’s IPC and Brazil’s Bovespa, which rose 0.28% and 0.56% respectively on the same day.

Looking ahead, investors will watch U.S. CPI data and China’s trade figures for fresh catalysts. With domestic inflation forecasts recently lifted to 4.4%, the market will likely hinge on trade-talk progress and commodity price trends.