Venezuela's Caracas Stock Exchange jumped over 16% on January 5, even as the US attacked the Latin American country and captured President Nicolas Maduro and his wife.
The IBC index, the major index on the Caracas Stock Exchange, jumped 16.45% on January 5 to close at 2,597.68. The Caracas Stock Exchange (BVC, or Bolsa de Valores de Caracas) is located in Venezuela's capital. According to Trading Economics, the index has jumped nearly 75% over the last month and has soared 1,952.32% over the last year. Meanwhile, Venezuela's government bonds also surged on January 5. Accoridng to Reuters, bonds issued by the government and state oil company Petroleos de Venezuela (PDVSA), jumped almost 30%. Experts say the jump in the stock market and bonds indicates investors are focusing more on the next likely leader of Venezuela, with hopes that the new leader backed by US President Donald Trump may mean the beginning of formal diplomatic relations and expanded licenses. This may also open the path to a debt restructuring. Trump vows to 'run' Venezuela President Trump on Saturday morning said that the US forces had conducted a 'large-scale strike' against Venezuela and captured its President Maduro, and his wife, Cilia Flores. Trump said the US would run Venezuela. As Mint reported earlier, Trump said the takeover would involve major US oil companies re-entering Venezuela to rehabilitate its severely deteriorated oil infrastructure, a task experts noted could take several years. Trump said he and his national security team would oversee a U.S.-led government and that the administration was "designating various people" to administer the country, take over its oil industry using U.S. companies and rebuild its "rotten" infrastructure.
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