Nelson Bocanegra, Julia Symmes Cobb

BOGOTA (Reuters – The Colombian peso was up and the stock exchange rose at Tuesday’s start to trading. It is the first session since Rodolfo Hernandez, a business-friendly construction magnate, won the race to become the next president of the country.

Gustavo Petro of the Leftist, who promises profound economic and social change won 40% of Sunday’s votes, while Hernandez unexpectedly received 28.2%.

Petro might have trouble beating Hernandez, who was backed previously by Federico Gutierrez (centre-right candidate).

The peso was at its highest position since April 18th, rising 4.89% and reaching 3,741 pesos for every dollar. Meanwhile, the COLCAP stock index was up 4.43% to 1,600.21 point.

Petro, who was the Bogota’s mayor in the past, will be running again for president. His promises include a public university free of charge, an embargo on oil and gas development, and pension reform to pay the most vulnerable.

Hernandez is a son of a farmer who built low-income housing and made a fortune as a farmer. He says that he plans to reduce government size and save money to pay student debt and cut down on value added tax.

Hernandez, who has been financing his own campaign, and has abandoned traditional advertising to make TikTok videos instead, is widely considered more friendly to the market, which is currently closed on Monday.

Andres Abadia is Pantheon Macroeconomics’ Latin America head economist. He stated that Hernandez was seen less negatively and represents more continuity in economic freedom, free enterprise, and business.

Sergio Olarte is Scotiabank’s head economist for Colombia. He stated, “The markets have started an important rally because there are no chances of a disruption in the future.”

Capital Economics stated Monday, despite Petro’s business experience, that Hernandez could pose a greater threat to the economy than Petro.

The note stated that neither Petro nor Hernandez are likely to increase fiscal policy in order to lower public debt risk, but both advocates higher trade barriers. This bodes badly for Colombia’s future growth prospects.

It stated that Hernandez’s plan to cut taxes would lead to an increase in the ratio of public debt to GDP (even though we believe it will continue rising under Petro),” Hernandez’s plans to increase trade barriers could have an adverse effect on productivity and economic growth in the medium term. Petro appears to be advocating more moderate trade protection.

These two men both pledged to complete the 2016 FARC rebels peace deal and will seek negotiations with the ELN guerrilla group on June 19.

Hernandez countered accusations that he would now be representing the right-wing parties in country, saying he is open to accepting any voter who wishes to vote but won’t negotiate alliances for policies.