Colombia's Stock Market Falls, Led By ISA; Peso Weakens

Colombia's Stock Market Falls, Led By ISA; Peso Weakens

BOGOTA (Dow Jones)--The Colombian stock index ended lower on Friday, pulled down by state-run electricity grid operator Interconexion Electrica SA (ISA.BO), or ISA.

The IGBC stock index fell 0.7% to close at 10,557.27 points, bringing the index down 5.4% so far this year.

"Pension funds and other institutional investors are not buying shares these days because they are waiting for the shares of Ecopetrol to start trading in November," said Nicolas Pardo, a market analyst with local brokerage Valores Bancolombia.

The Colombian government sold a 10.1% stake in state-run oil company Ecopetrol in August and September, raising about $2.8 billion. Ecopetrol will start trading on the stock market in November.

Ecopetrol's price is likely to rise, since demand was strong during the sale, Pardo said.

The most heavily-traded share Friday was ISA, which fell 1% to 6,710 Colombian pesos ($3.40), as COP9.1 billion worth of shares changed hands.

"ISA is a typical share for long-term investors such as pension funds," Pardo said.

The second most-traded share was financial holding company Suramericana de Inversiones SA (SURAMINV.BO), which fell 1% to COP19,320.

The peso weakened to COP1,972.5 to the dollar from COP1,969.25 on Thursday. The yield on the benchmark peso-denominated bond maturing in 2020 fell to 10.150% from 10.158% Thursday.

-By Inti Landauro, Dow Jones Newswires; 57-310-867 65 42; colombia@dowjones.com