Ecopetrol SA (ADR) (NYSE:EC) Outlook

Ecopetrol SA (ADR) (NYSE:EC) Outlook

Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) reports that, on June 8, 2016, based on the authorization granted by the Ministry of Finance and Public Credit (Resolution 1657 of June 7, 2016) to subscribe, issue and place External Public Debt Bonds in the international capital markets, it reopened its 2023 Bond for US$500 million, with the following results:

Maturity Date: September 18, 2023
Total Amount Issued: Five hundred million dollars (US$500,000,000)
Offering Date: June 8, 2016
Settlement Date: June 15, 2016
Credit Rating:
Moody’s Investors Service: Baa3
Standard & Poor’s Ratings Services: BBB
Fitch Ratings: BBB
Amortization of Principal: Upon maturity
Reopening Price: US$101.612
Reopening Yield: 5.600%
Coupon Rate: 5.875%
Interest Payment Dates: September 18 and March 18, beginning on September 18, 2016

The offering had an order book of US$1.7 billion or 3.4 times the amount offered and participation of more than 130 institutional investors from the USA, Europe, Asia and Latin America. This transaction ratifies investors’ confidence in the decisions that have been made to face the pricing environment and Ecopetrol’s future.

ECOPETROL S.A closed down -0.490 at 9.510. Volume was 26% below average (neutral) and Bollinger Bands were 23% narrower than normal.

Open High Low Close Volume___
9.800 9.800 9.500 9.510 331,170

Technical Outlook
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 9.33 9.26 8.39
Volatility: 52 49 67
Volume: 416,694 388,709 387,609

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


ECOPETROL S.A is currently 13.3% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of EC.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on EC.N and have had this outlook for the last 14 periods.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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