The Bovespa Index Declines on MMX Data

Brazil’s benchmark gauge, the Bovespa index has declined today, after MMX Mineracao & Metalicos SA, owned by Brazilian billionaire Eike Batista experienced high drops. Incidentally, this iron-ore producer posted results of the 4th quarter and that missed initial estimates. The Bovespa index declined by 1% on today and is currently at 56389.48. Out of the 63 listed companies in total, 49 saw declines, whereas, the rest 14 went ahead. Incidentally, Eike Batista has 6 different companies listed in the stock index of Brazil. Well, 46 different Brazilian companies have published reports on their 4th quarter earnings so far and 32 out of those have already missed the forecasts.

According to a recent report published, MMX posted an adjusted net loss of 348.7 million Reais in the 3 months ending in last December. The average estimated loss was of 48.7 million Reais. According to the Analyst of Brokerage Company Clear Corretora, Fernando Goes, MMX is one of those companies which are already on a sort of stable state. However, MMX has struggled to make money and this implies what sort of condition the other companies owned by Goes are currently in. MMX experienced a decline of 4.7% on today and it is currently priced at 3.04 Reais per share. On the other hand, the oil unit of Batista, OGX Petroleo & Gas Participacoes SA experienced a tumble of 0.8% and each of its shares currently costs 2.45 Reais. OGX Petroleo & Gas Participacoes SA, in 2013, has experienced a decline of 44% till date.

According to reports, Batista will be selling a stake in MPX Energia SA, his power-generating unit. The creditors are demanding this to boost collateral, as far as people with knowledge on this matter are concerned. On today, MPX went down by 3.8% and each share of its costs 10.34 Reais now.

OSX Brasil SA went down by 1.4%, whereas, CCX Carvao da Columbia experienced a tumble of 0.5%. On the other hand, LLX Logistica SA declined by 0.8% after rising by 1.7% earlier.

The biggest iron-ore producer in the world, Vale SA has experienced a slid of 2.8% and each of its shares is currently priced at 32.73 Reais. Goldman Sachs Group has already cut its forecast for the price of the commodity. In 2013, the steel making ingredient is expected to be priced at $139 per metric ton.

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