The MSCI COLCAP index dropped 4.4% to close at 2,393 on June 22, giving back part of its recent gains following one of the closest presidential elections in Colombia’s history. The initial optimism after Abelardo de la Espriella’s victory faded as investors focused on his slim margin of success and the potential obstacles this poses to advancing market-friendly reforms.
The right-wing outsider won the presidency by roughly one percentage point over leftist Senator Iván Cepeda, falling short of investors’ expectations for a more decisive mandate. De la Espriella has vowed to narrow Colombia’s widening budget deficit while backing coal mining and oil drilling to bolster fiscal revenues.
Financial and energy shares led the decline, with Cibest losing 5.3% and Ecopetrol tumbling 8.5%.