After Petro's election, Ecopetrol shares continue to fall in Colombia and New York

For the third consecutive day, Ecopetrol’s share continued to add losses and trades at $2,082 on the Colombian Stock Exchange (BVC), a minimum in the last year. Meanwhile, its ADR on the New York Stock Exchange (Nyse) registered a 4.2% drop.

The shares of the national oil company have been on a downward trend since it became known that Gustavo Petro will be the president of Colombia in the next four-year term.

In addition, oil prices extended their losses today, as international investors reassessed the risks of recession and how fuel demand will be affected by the increase in interest rates by the US Federal Reserve.

Brent crude oil barrel, Colombia’s benchmark, was down 0.85% at US$110.17; while West Texas Intermediate (WTI) was down 1.08% at US$105.04.

“The uncertainty related to the new government’s proposals regarding the oil sector remains. But yesterday it was much clearer the sector risk to explain the fall of Ecopetrol, which was in line with the herd during the day,” said Omar Suarez, director of equity strategy for Casa de Bolsa.

Advertisement

According to Suárez, one of the reasons behind the fall of the shares during the trading day is the ex-dividend date, since on June 30 the company will pay shareholders the extraordinary amount ($168) that was approved at the last meeting.