Colombia’s stock market raced to a record this week, with the MSCI Colcap index up about 44% so far in 2025, making it the top performer among Latin American markets, traders and analysts said Tuesday. The Colcap climbed past 2,000 points for the first time, led by bargain valuations, stronger company earnings, rising foreign investment, robust domestic spending, and hopes of a political shift ahead of next year’s presidential vote.
“The index was trading at about five times earnings, very cheap by historical standards,” said Carlos Franco, director of economic strategies at Progresion. “Even after the rebound, Colombian stocks still look like a discount.”
Banks and miners helped push the rally. Grupo Cibest, the company formerly known as Bancolombia, posted first-half profits of more than 3.5 trillion pesos (about US$907 million), a 12.9% increase from the same period in 2024. Mineros, a gold producer, has risen more than 230% this year amid a jump in bullion prices.
Voters’ attitudes and the upcoming election may shape Colombia’s stock market
Analysts say voters’ attitudes and the political calendar are also shaping the stock market. With presidential elections about nine months away and major reforms stalled in Congress, investors are beginning to price in the possibility of a change in government that could ease policy uncertainty.
“The market is starting to discount a political turn, and that shifts investor sentiment,” said David Cubides, chief economist at Banco de Occidente. Jose Ignacio Lopez, president of think tank ANIF, added that even a left-leaning government could act pragmatically and speed investment projects, a view that has kept some investors optimistic.
Foreign money has flowed in as the dollar weakened and the peso strengthened, making Colombia attractive for short-term carry trades and portfolio investment. At the same time, stronger household spending, helped by low unemployment, higher remittances, and government outlays, has lifted company revenues and profits.
Less than 2% of Colombians hold equities
Still, experts warn that the rally comes with risks. The central bank has kept interest rates high, and inflation remains persistent. ANIF and other groups point to weak public accounts, low market depth that limits retail access, and a government proposal to restrict pension funds’ overseas investments, a plan that ANIF says could have cut pension savings by as much as 145 trillion pesos if it had been in place last year.
Despite the boom, stock ownership remains rare in Colombia: Fewer than 2% of Colombians hold equities. But new, mostly younger investors are arriving through digital platforms. Carlos Guayara, founder of the investment app trii, said new users have grown 45% in four years; about 80% are ages 20 to 45, and roughly 25% are women. “For many Colombians, fixed income has a ceiling and the stock market now looks like the best way to build wealth,” Guayara said to El Pais.
Colcap’s milestone reflects a mix of cheap starting prices, corporate gains, foreign flows, strong local demand, and political hopes. Economists said that the combination could sustain gains, but warned that inflation, fiscal pressures, and structural limits in the market could still slow the rally.