Corficolombiana Jumps to Highest in Month on Floods
Corp. Financiera Colombiana, a Colombian financial-services and holding company with investments in the construction industry, rose to its highest level in a month on speculation the government will increase spending on infrastructure after flood damage.
Ordinary shares rose 1.78 percent to 35,700 pesos in Bogota at the market’s close, the highest level since Nov. 3. The Bogota-based company has gained 3.5 percent since Dec. 7, when President Juan Manuel Santos declared an emergency that allows the government to seek new sources of revenue.
“The construction industry is going to receive additional investment from the budget assigned by the public sector to repair rain damages,” said Daniel Munoz, an analyst at brokerage Cia. de Profesionales de Bolsa in Bogota.
Colombia will use funds remaining in the 2010 budget to repair damage caused by heavier-than-normal rainfall, Santos’s office said in an e-mailed statement on Dec. 14.
The government also is considering raising taxes and selling shares of state-controlled companies, including oil producer Ecopetrol SA, to pay for repairs, broadcaster RCN reported on Dec. 15.
Rains today prompted the closure of 53 roads and access restrictions to 252 routes, newspaper La Republica reported.
Flooding has damaged close to 1 million hectares (2.5 million acres) of crops and the cost of repairing damage to roadways and aiding victims may reach 10 trillion pesos ($5.2 billion), according to the government.
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