Financial Times (Reino Unido)
A funny thing happened to Brazil’s benchmark Bovespa index this month.
OGX Petróleo e Gas, the oil company controlled by the country’s richest man, Eike Batista, has been one of the market’s most notorious losers, shedding about 87 per cent of its value over the past year to become a penny stock in dollar terms.
Its reward for this unruly behaviour? A greater weighting in Brazil’s Bovespa. Indeed, the oil explorer and producer is one of the five stocks with the heaviest weighting in the index, joining much more venerable, although also underperforming, names such as Vale, the world’s largest iron ore exporter, and Petrobras, the national oil company.
The reason for this anomaly is that the Bovespa is one of the few large indices heavily weighted according to liquidity as well as market capitalisation, meaning the most volatile stocks often sit higher in the index than they…
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