here is a sliver of hope for us exporters

Here is some hope for us beat to shit exporters "trying" to survive in Colombia..........


Colombia Peso Weakens As S&P Reduces Bear Stearns Outlook
08-03-2007 05:42:00 PM



BOGOTA (Dow Jones)--Colombia's peso weakened Friday after Standard & Poor's cut its ratings outlook for Bear Stearns Cos. (BSC) amid mounting concerns over the subprime mortgage market.

The peso closed at COP1,967.00 to the dollar from COP1,956.01 Thursday amid low volume.

A total of $527 million changed hands during Friday's session, while the market traded a daily average of $877 million in July.

S&P revised its outlook on the long-term direction of Bear Stearns' credit ratings to negative from stable. The ratings agency cited Bear Stearns' high degree of reliance on the U.S. mortgage sector as one of the drivers behind its decision to lower the outlook.

Cesar Tovar, an analyst with the local unit of Stanford Group, said the country's largest banks and foreign funds bought greenbacks to seek shelter in more secured assets such as U.S. Treasury bonds.

"I think markets have overreacted to subprime news," Tovar said. "Even though analysts say calm will return to the markets, I believe more funds in the U.S. may report difficulties," Tovar added.

In addition to U.S. subprime concerns, sharply higher crude oil prices will keep generating risk aversion among investors toward emerging markets next week, Tovar added.

In the local equity market, the IGBC fell 0.1% to 10,967.98 points amid a slow session.

The equity market traded COP48 billion, lower than the COP100 billion daily average traded last month.

The sharpest fall came in from textile company Coltejer (COLTEJER.BO), which declined 3.3% to COP14.50.

The most heavily traded stock was Colombia's largest bank Bancolombia ( BCOLOMBIA.BO), accounting for a quarter of Friday's total trading volume. Bancolombia advanced 0.8% to COP16,900. The bank is expected to release its net income for the second quarter Monday.

Cementos Argos, Colombia's largest cement company, fell 0.5% to COP9,200. On Friday, the Venezuelan government declared the assets of the Corporacion Cemento Andino of public utility and social interest. The Venezuelan government then expropriated the assets immediately. Cemento Andino's assets in Venezuela are owned by Cementos Argos.

On the debt market, the yield on the benchmark peso denominated TES maturing in 2020 ended almost unchanged at 9.917% from 9.91% Thursday.

-By Diana Delgado, Dow Jones Newswires; 571-6001980; diana.delgado at dowjones.com

By jarhead on Aug 6, 2007, 11:34 in Friendly Talkzone.

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