Venezuela’s IBC Index Rises 16%, Hits 52-Week High After US Strike
The Venezuelan stock market experienced a remarkable increase on Monday, January 5, 2026, with the Caracas Stock Exchange index rising by 16.45 per cent. This significant rally propelled the index to a new 52-week high, closing at 2,597.68 points, compared to the index’s previous close of 2,230.81. The index reached an intraday peak of 2,621.77 and an intraday trough of 2,230.81. The surge follows a surprise US attack on the South American nation and the capture of its President Nicolás Maduro. Investors responded with fervent optimism to “Operation Absolute Resolve,” a significant US military operation initiated in the early hours of January 3. The intervention resulted in the apprehension of President Nicolás Maduro and his wife, Cilia Flores, who were later taken to New York to answer charges of narco-terrorism and drug trafficking.
The market’s positive reaction is primarily linked to anticipations of a comprehensive economic transformation, as US President Donald Trump has signaled a strategy to engage prominent American energy companies in the effort to rehabilitate Venezuela’s deteriorating infrastructure. Investors are wagering that the ousting of the Maduro administration will result in the alleviation of enduring international sanctions and a rejuvenation of the nation’s oil sector, which possesses the largest proven reserves in the world. Ousted Venezuelan President Nicolas Maduro and his wife Cilia Flores have entered a plea of “not guilty” to narcotics charges, following US President Donald Trump’s unexpected capture of them over the weekend. Before US District Judge Alvin Hellerstein in Manhattan federal court, the former President stated, “I am innocent.” I am not guilty. I consider myself a decent man. “I am still the president of my country.” The US Department of Justice has, in a significant move, unsealed indictments that allege a decades-long conspiracy to “flood the United States with cocaine.” The upcoming hearing is scheduled for March 17, according to reports.
Additional significant advancements include interim leadership, with Vice President Delcy Rodríguez taking the oath as interim president of Venezuela. Initially, she condemned the US action as a “cowardly kidnapping,” but recent reports indicate a shift towards a more conciliatory tone during her first cabinet meeting aimed at maintaining administrative continuity. On the global front, an emergency meeting of the United Nations Security Council was convened on January 5 to deliberate on the implications of the strike. Although certain regional allies have voiced apprehensions regarding the legality of the intervention, market analysts indicate that the potential to release around 900,000 barrels of oil per day is fueling the prevailing “risk-on” sentiment within the financial sector. China has articulated its “shock and condemnation” regarding the US’ military action, calling on Washington to release the ousted Venezuelan president and urging dialogue to resolve the crisis.
China’s stance comes amid its substantial investments in Venezuela and broader influence across Latin America over the past two decades. According to reports, state-owned Chinese companies have invested $4.8 billion in Venezuela during this period, while Beijing has successfully influenced countries such as Panama, Costa Rica, the Dominican Republic, and El Salvador to shift diplomatic recognition from Taiwan to China, according to a source. Meanwhile, US markets hit record highs on Monday, with major indexes including the Dow Jones Industrial Average reaching unprecedented levels, supported by robust performances in energy giants and industrial stocks. The Dow Jones advanced by 1.23 percent, the S&P 500 rallied by 0.64 percent, and the Nasdaq Composite gained 0.69 percent. Energy shares, encompassing oilfield services and refiners, demonstrated strong gains as investors positioned themselves for anticipated production increases and infrastructure rebuilding efforts linked to developments in Venezuela.
