By Rogerio Jelmayer
SÃO PAULO--Despite the collapse of his fortune and some of his
companies, Brazilian businessman Eike Batista has returned to
Brazil's main stock-market index, thanks to the modest resurgence
of his mining company.
Mr. Batista's MMX Mineração e Metálicos SA joined the Ibovespa
index Monday, and will remain there at least until Aug. 29, when
the exchange operator next updates the index. MMX shares will
account for 0.02% of the index.
BM&FBovespa SA changes the composition of the index three
times a year, largely based on the volume of stock trading.
As MMX joins the Ibovespa, a company Mr. Batista used to
control, Prumo Logística SA (formerly LLX Logística SA), dropped
out of the index. Mr. Batista sold control of Prumo to U.S.-based
EIG Group last year.
Mr. Batista's companies made him Brazil's richest man, and he
vowed to become the richest person in the world. But his wealth
plunged from more than $30 billion in 2012 to less than $1 billion
after his oil company, Óleo e Gás Participações SA failed to meet
production targets.
OGP's failure drove his other companies into turmoil, and most,
including MMX, dropped out of the Ibovespa index after
BM&FBovespa changed its methodology to remove penny stocks.
Last week, public prosecutors said they are investigating
BM&FBovespa over whether the exchange held any blame for the
collapse of Mr. Batista's companies. Federal police are
investigating Mr. Batista and his once-high flying oil company,
which is trying to exit from bankruptcy.
Meanwhile, for the first time in three decades, a bank will be
the largest stock in the Ibovespa. Itaú Unibanco Holding SA will
account for 9.973% of the index, overtaking the two companies that
have dominated the index over this extended period: state oil
company Petróleo Brasileiro SA and metals and mining firm Vale SA.
Their shares fell to 7.795% and 5.640% of the Ibovespa,
respectively.
Brazil's private sector bank shares have risen in value faster
than the main index in recent months, as their conservative
approach to credit portfolios generates less default and, as a
result, less provisions charges.
At the same time, the government's intervention to control fuel
prices at Petrobras has hurt the company's shares, while signs of a
slowdown in China and the possible impact on iron ore demand have
hit Vale's stock.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
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