Colombian Stocks: Cementos Argos, Inversiones Argos, Rubiales
The following companies had unusual price changes in Bogota trading. Stock symbols are in parentheses and prices are as of 4 p.m. local time.
The IGBC Index (IGBC) rose 2.8 percent to 12,501.82, while the Colcap Index gained 2 percent to 1,512.95.
Cementos Argos (CEMARGOS) , Colombia’s biggest cement maker, rose 4.7 percent, the most since March 18, to 10,160 pesos. Shareholders of parent company Inversiones Argos (INVARGOS) SA approved a spinoff by its Cementos Argos unit of assets that aren’t related to cement production, according to a regulatory filing Nov. 25.
Inversiones Argos (INVARGOS CB) rose 1.6 percent to 15,240 pesos after the company was given a 2012 year-end target price of 23,500 pesos by brokerage Bolsa y Renta.
The company’s absorption of assets in the spinoff has turned it into a “diversified holding” with exposure to Colombia’s infrastructure sector, according to an e-mailed report by analysts including Carlos Eduardo Gonzalez. The brokerage maintained its “buy” recommendation for the company.
Pacific Rubiales Energy Corp. (PREC) , the Toronto-based oil producer that operates fields in Colombia, rose 5 percent to 38,860 pesos. Recent upgrades in credit ratings are a sign of the company’s “growing financial strength,” Ronald Pantin, the company’s chief executive officer, said in a regulatory filing today.
Moody’s Investors Service upgraded Rubiales’s Corporate Family Rating to Ba2 from Ba3 in a Nov. 21 statement, citing progress in growing production and prospects for strong cash flow from its heavy oil output.
Fitch Ratings upgraded Rubiales’s foreign and local currency issuer default ratings from BB to BB- on the company’s “proven track record of increasing production while maintaining adequate reserve replacement ratios,” according to a Nov. 3 statement.
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