Colombia’s Return To Growth Will Boost The Performance Of Its Banks
After a listless five years since the oil collapse began, Colombian stocks have ended 2019 on fire. The COLCAP market index has gained 25% over the last year and appears poised to rally further with many financial stocks including banking conglomerate Grupo AVAL (AVAL) and Bancolombia (CIB) have gained 50% and 45% respectively. Much of this can be attributed to higher than anticipated economic growth and firmer domestic consumption. A combination of improved growth and a firmer economic outlook will boost their earnings which combined with a stronger Colombia peso will lift the value of their ADRs.