Mineros Loses Most on Colombia Index as Gold Falls: Bogota MoverMatthew Bristow
Mineros SA, a Colombian mining company, fell the most on the country’s benchmark stock index after prices for the precious metal had their biggest plunge in 33 years.
The shares lost 4.44 percent, to 4,300 pesos at the close in Bogota, the biggest drop since July. The stock was the worst performer on the IGBC index, which rose 1.1 percent.
While shares of Mineros, based in Medellin, don’t change hands every day in Bogota, the stock hasn’t posted a daily gain in a trading session for more than a month. Corp. Financiera Colombia SA, a Colombian financial company that is Mineros’s second-biggest shareholder according to data compiled by Bloomberg, said April 10 that it plans to sell the stake.
“The price of gold is falling, and at the same time the market believes that there’s an important block of selling,” said Mauricio Restrepo, an analyst at Bolsa y Renta in Medellin.
Gold futures for June delivery plummeted 9.3 percent yesterday in New York, the biggest drop since 1980 for a most-active contract. Gold rose 1.4 percent today to $1,366.35 an ounce at 4:19 p.m. in New York.
Last month Mineros agreed to buy 90% of Nicaraguan gold producer Hemco in a leveraged acquisition.