OGX Gains to Month High as Ibovespa Weighting Projected to Rise

OGX Petroleo & Gas Participacoes SA (OGXP3), Eike Batista’s flagship oil producer, rose to a one-month high amid signs that its weighting in the Ibovespa equity benchmark will more than double as trading volume surges.

Shares rose 3.1 percent to 66 centavos at 1:23 p.m. in Sao Paulo, extending its eight-session rally to 32 percent. The stock is down 85 percent this year as the company’s failure to meet oil output targets sparked concern that it will run out of cash to fund projects.

OGX’s Ibovespa weighting will rise to 4.82 percent from 1.86 percent starting Sept. 2, according to data compiled by Bloomberg based on trading figures in the past 12 months. BM&FBovespa will release the first preview of the index tomorrow.

“Considering that the stock’s weighting on the index will surge, gains will probably keep going for a while,” Roberto Altenhofen, a Sao Paulo-based oil and gas analyst at consulting firm Empiricus Research, wrote in a research note. “But I don’t see any fundamental improvement to recommend buying OGX.”

Batista, who was ranked as the world’s eighth-richest person last year, ceased to be a billionaire as OGX and his other commodities and logistics startups slumped. The producer will have the biggest weighting increase on the Ibovespa, according to the data compiled by Bloomberg.

OGX’s press office didn’t immediately respond to an e-mail and a phone call seeking comment.

Education company Anhanguera Educacional Participacoes SA (AEDU3) will probably be added to the equity index with a weighting of 0.63 percent, the data show. After adding the stock, the Ibovespa will have 72 members, according to the data.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: Brendan Walsh at bwalsh8@bloomberg.net

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