Colombian Markets Sink After Leftist Wins Presidential Election

  • Peso leads losses among major currencies; stocks, bonds slump
  • Investors anxiously awaiting Petro’s pick for finance minister
Gustavo Petro, Colombia’s president-elect, center, speaks during an election night rally following the runoff presidential election in Bogota, Colombia, on Sunday, June 19, 2022. Photographer: Andres Cardona/Bloomberg
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Colombian assets tumbled Tuesday as markets reopened after leftist Gustavo Petro won Sunday’s presidential election on a platform to wean the country off its reliance on raw materials and tax the rich.

The peso slumped as much as 5%, while stocks dipped 6% before paring some losses. The nation’s sovereign dollar bonds were among the worst performers in emerging markets, and yields on local debt due 2024 lingered near a record high. State-run oil company Ecopetrol SA’s securities also took a hit, with shares down more than 10% and benchmark dollar bonds briefly touching an all-time low.