Isagen SA surged after incumbent Juan Manuel Santos defeated Oscar Ivan Zuluaga, who opposed the sale of the government’s stake in the hydropower company, in Colombia’s presidental runoff.
The shares jumped 6.6 percent to 3,130 pesos at 9:03 a.m. in Bogota in the best performance on the benchmark Colcap index, which increased 0.4 percent. Isagen rallied 8.3 percent earlier today, the biggest intraday gain since 2009.
Santos won 51 percent of yesterday’s runoff vote, compared with 45 percent for Zuluaga, an ally of former President Alvaro Uribe. A Colombian court ruled last year against Uribe’s attempt to block the government’s sale of its stake in the Medellin-based company.
The election result is “a reaffirmation that the sale process will continue,” Jaime Pedroza, an analyst at Credicorp Capital’s Colombia unit in Bogota.
An Isagen stake sale would be used to help finance the country’s 47 trillion pesos ($25 billion) road construction program known as Fourth Generation, or 4G, Santos has said.