IGBC Index

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The IGBC index is the equities benchmark of the Colombia Stock Exchange and consists of around 30 of the exchange's highest capitalised and most liquid local shares. Although it's the official index of the CSE, the IGBC Index also competes with Colombia stock benchmarks from well known global index providers FTSE Group and MSCI.

Background

The IGBC Index was created in mid-2001, shortly after the formation of the Colombia Stock Exchange and is described by Bloomberg as the "capitalization-weighted index of the liquid and highest capitalized stocks traded on the Colombia Stock Exchange."[1] It currently consists of 29 Colombian stocks and is heavily dominated by three equities: Ecopetrol with a 37% weighting, Bancolombia with almost 12% and Suramerica de Inversiones with just over 10%. Other IGBC heavyweights include Interconexion Electrica and Textiles Fabricato Tejicondor, each with around 5% of IGBC Index weighting.

Competitors

Several other Colombian stock indexes offered by large international benchmarking corporations compete with the IGBC for global investor attention. Perhaps best known is the FTSE Group's FTSE Colombia 20 Index, consisting of the 20 most liquid share listings on the Colombia Stock Exchange weighted by adjusted market capitalization and capped to comply with U.S. tax rules.[2] FTSE's index forms the benchmark for recently launched exchange-traded fund the Global X/InterBolsa FTSE Colombia 20 ETF, which began trading in March 2009. Another benchmark rival, the MSCI Colombia Index, was launched in 1992 with a base value of 100 and is described by Bloomberg as "a free-float weighted equity index". Its value on April 27, 2009 was 457.75.[3]

Latest news

The IGBC Index has shown signs of recovery in early 2009 after falling 29% in 2008 and 4% the previous year, but analysts expect poor first-quarter corporate results to slow the index's upward momentum.[4] Lowered profits for IGBC Index leader and petroleum-industry giant Ecopetrol as well as declining revenues at Fabricato Tejicondor, Almacenes Exito and Grupo Nacional de Chocolates are all expected to drag on the IGBC Index for the next few months.

References

  1. IGBC INDEX. Bloomberg.
  2. Interested in Colombia? A new ETF offers access. MarketWatch.
  3. MSCI COLOMBIA. Bloomberg.
  4. Colombia 2Q Stock Outlook: Weak Earnings To Crimp Recovery. Dow Jones.