Colombia’s MSCI COCLCAP index jumped nearly 7% to above 2,320 in the first trading session of June, its highest level since April. The rally followed a strong showing by right‑wing populist outsider de la Espriella in the presidential elections, where he secured the largest share of votes and advanced to a run-off against leftist candidate Cepeda, who is backed by outgoing President Petro. The outcome ran counter to pre-election polls, which had pointed to a likely leftist victory.
Colombian equities moved in tandem with gains in the peso and the country’s sovereign bonds. Espriella has pledged to reduce Colombia’s widening budget deficit amid increasingly strained public finances; last year’s shortfall reached 6.4% of GDP, a key justification for the central bank’s decision to keep monetary policy in restrictive territory. He has also vowed to support coal mining and oil exploration and production, sectors that have faced resistance from the current administration. Shares of Ecopetrol, the state-controlled oil company, climbed more than 8%.
