Telemar Becomes Bellwether Stk In Brazil's
Bovespa Index
Dow Jones Newswires
SAO PAULO -- Brazil's largest fixed-wireline telecommunications
company Tele Norte Leste SA (TNE), known as Telemar, will become the
new bellwether stock of the Sao Paulo Stock Exchange in September,
according to the projected new weightings of the main Bovespa index
released Tuesday.
Telemar's weighting in the new 57-stock index, which will be valid from
September to December, will be 8.4%, down from 8.5% currently.
Nonetheless, it will displace federal oil giant Petroleo Brasileiro SA
(E.PTB), or Petrobras, whose share of the index drops to 8.0% from
10.2%.
Another stock losing weight in the main index will be federal electric energy
holding Centrais Eletricas Brasileiras SA (E.CEB). Preferred shares in the
company will account for 4.1% of the index starting in September, down
from 6.9%. The stock currently has the third heaviest weight in the index,
but will fall to eighth when the new measurements take effect.
Eletrobras shares tumbled in late trading Monday as the market speculated
about the reduced weight of the stock in the Bovespa Index, as managers
of funds that mirror the index, so-called passive funds, started placing
money elsewhere. In late trading Tuesday in Sao Paulo, Eletrobras
preferred shares were off 7.1% at BRR39.50, while the main index was
down 1.6%.
One of the prime beneficiaries will be cable TV and Internet group Globo
Cabo SA (GLCBY), whose preferred shares will have a 7.8% weighting in
the new Bovespa index, up from 4.6% currently.
Among the other stocks with heavy weightings, long distance
telecommunications concern Embratel Participacoes SA (EMT) will
account for 5.0% of the revised index, up from 4.9%; leading private bank
Bradesco SA (E.BBR) will represent 4.9%, down from 5.0%;
fixed-wireline carrier Brasil Telecom Participacoes SA (TCS) will account
for 4.5%, unchanged from its current weighting; and mining giant Cia. Vale
do Rio Doce (E.VRD) will have a 4.0% weighting, versus its current 3.4%.
The weightings are calculated based on trading volume over the past 12
months.
-By Stephen Wisnefski, Dow Jones Newswires; (5511) 813-1988;
stephen.wisnefski.dowjones.com |
