CCX Carvao da Colombia SA, the coal unit of Brazilian billionaire Eike Batista, slumped the most since it started trading last week as investors flee pre-operational companies amid a worsening crisis in Europe.
Shares (CCXC3) of Rio de Janeiro-based CCX dropped 17 percent to 4.95 reais at the close in Sao Paulo today, the most since the company started trading May 25. The stock has had a 42 percent loss since then.
CCX, which plans to invest $5.5 billion to develop a coal mine, a railway and a port project in Colombia to begin production in 2017, was spun off from Batista’s power-generating unit MPX Energia SA before the listing. Investors in Brazil are more reluctant to buy pre-operational companies amid a worsening scenario in Europe, said Pedro Galdi, equity strategist at brokerage firm SLW Corretora in Sao Paulo.
“Eike Batista’s companies are still junior and they gained a speculative profile so when they gain, it is more than the index and the same when they fall,” Galdi said in a telephone interview.
MPX declined 3.9 percent to 33.30 reais today to the lowest since Nov 24.
To contact the reporters on this story: Juan Pablo Spinetto in Rio de Janeiro at firstname.lastname@example.org;
To contact the editor responsible for this story: Dale Crofts at email@example.com