Colombian Stocks' Losing Streak Hits Eight; Peso Weakens

Colombian stocks fell for an eighth straight session Thursday, and this time without U.S. stock markets to blame as they were closed for the Thanksgiving holiday.

The Colcap index, the benchmark for Colombia, declined 0.29% to 1492.30 points, its lowest level since July 2010.

Leading decliners was Colombia's largest food producer, Nutresa (NUTRESA.BO), which dropped 1.44% to COP20,560. Investors are worried that Nutresa will be hurt by higher food prices as extremely heavy rains in Colombia flood crops and wash away major roads and highways used to transport the food to market.

Despite the overall market's decline, shares of Colombia's largest lender, Bancolombia (CIB, BCOLOMBIA.BO), gained 2.3% to COP26,500 after it announced plans to be one of several co-investors in the purchase of ING Groep's (ING, INGA.AE) Latin American pension business. Bancolombia's parent company, Grupo de Inversiones Suramericana (GIVSY, GRUPOSURA.BO), is leading the purchase, which is expected to be completed by the end of the year.

Meanwhile, the Colombian peso fell back against the dollar for a second straight session, closing at its weakest level since early October. It ended Thursday at COP1,940.20 to the dollar, from COP1,935 Wednesday.

The yield on Colombia's peso-denominated bond due July 2024 closed at 7.672%, after ending Wednesday at 7.660%. Yields have been rising for several weeks on fears of higher inflation due to the transportation problems caused by heavy rains.

-By Dan Molinski, Dow Jones Newswires; 57-310-867-6542; [e-mail]