The after-hours market of the São Paulo
Stock Exchange (Bovespa) closed Friday on a 3.445
million reais volume ($1 = R$ 2.165), the result of
Leading in terms of volume were preferred shares in steel
company Gerdau (R$ 275,537). These were followed by common
shares in online retailer Submarino (R$ 240,431), common shares
in savings bank Nossa Caixa (R$ 239,500), preferred shares in
leading private sector bank Bradesco (R$ 225,635) and preferred
shares in Brazilian state run oil company Petróleo
Brasileiro (Petrobras) (R$ 197,948).
Bolivian hydrocarbons minister, Andres Soliz Rada,
conditioned an increase in the volume of gas to the
Brazilian market on a rise in price. Rada
said that once a new price is decided, Bolivia will negotiate
new contracts with Brazilian oil company Petrobras. Rada
responded to the president of Petrobras, Sergio Gabrielli, who
said that investments in Bolivia are paralyzed waiting on new
rules for the sector. Bolivia has a contract with
Brazil to sell 30 million cubic meters daily,
but Brazil buys only 24 million cubic meters. However, Rada
said that the Lula administration asked for a new
contract worth 68 million cubic meters daily by 2010.
Bolivia sells natural gas to Brazil for $3.4 per million
Increased capital will permit Colombia's largest bank,
continue acquisition-driven growth, US investment bank
UBS said in a report.
Bancolombia's capital ratio stood at 10.9% at the end of last
year and the bank is targeting a 12.5% ratio in the medium
Future purchases could be both niche or large, UBS
said. The bank failed in its recent 733 billion peso
($321million) bid for Megabanco, but the government's likely
sale of Granbanco-Bancafé will provide a new
Expansion could also take place abroad, UBS said. In an
interview in January with BNamericas, Bancolombia CEO Jorge
Londoño said the bank was looking
for purchase opportunities to grow abroad as it already has a
considerable share of the home market. Bancolombia commands a
20% market share in Colombia, measured by
Earlier in March, Bancolombia saw rival bank Banco de
Bogotá win the auction for liquidated bank Megabanco
with an 808 billion peso bid. Last month Fogafin hired UK
investment bank Rothschild to decide Bancafé's fate.
Rothschild is expected to finish its report in April.
UBS also reiterated its "buy" rating on Bancolombia due
to Colombia~s strong economic performance, evolving
financial system and reduced political risk.
Bancolombia saw its consolidated net income rise to 947 billion
pesos ($421million) for 2005, up 18.2% compared to the previous
year. The bank's largest shareholder is the Suramericana Group,
a Medellín-based industrial group with activities in
financial services, cement and food.