Colombia's stocks fell Friday as nervous investors are pocketing gains as the index approaches record highs. The benchmark IGBC stock index fell 1% to 11,181.44 points. The index had gained 6.2% in the month to Thursday. "Investors are nervous because the stock index has gained more than 40% so far this year, while the economic situation is still very weak," said Jorge Zuniga, a market analyst with local brokerage Asesores en Valores. The economy contracted 0.5% in the first half of this year compared with the same period in 2008, but some analysts say it has likely touched bottom and is heading for a timid recovery in the closing months of 2009. The most-traded shares Friday were the preferred shares of Bancolombia SA (CIB) as they fell 2.1% to 20,060 ($10.86). The price fell as a result of the arbitrage with Bancolombia's New York-listed shares, which lost value in peso terms as the Colombian currency has appreciated strongly in the past days. The peso appreciated to COP1,847 to the dollar on Friday from COP1,858 on Thursday. The peso hit its strongest level since Aug. 12, 2008. The yield on the benchmark peso-denominated government bond maturing in 2020 rose to 8.769%, from 8.764% on Thursday.
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