Eike's fall takes the Ibovespa down with it.

By Danielle Assalve

SAO PAULO, March 22 (Reuters) The main Bovespa index fell to its lowest level in eight months on Friday, bucking the trend in international markets, pressured by the plunge in companies owned by billionaire Eike Batista.

The Ibovespa fell 0,6 percent to 55.243 points, its lowest closing level since July. Trading volume was 6,16 billion reais, below the year's daily average.

As a result, the index accumulated a drop of 2,86 percent for the week, its second consecutive week of decline.

Shares of Eike Batista's EBX group fell across the board again. Among those that make up the Ibovespa index, LLX plunged 11,1 percent, OGX lost 9,2 percent, and MMX dropped 8,3 percent.

"It's yet another herd mentality," said analyst João Pedro Brugger of Leme Investimentos in Florianópolis, citing persistent market concerns about the outlook for EBX group companies.

Preferred shares of blue-chip companies Vale and Petrobras also had a volatile day, but closed the session in positive territory -- rising 0,06 percent and 0,54 percent, respectively.

Cyrela Brazil Realty was a standout performer, rising 3,74 percent to 16,65 reais, following the release of its fourth-quarter results.

"The company continues its recovery process, showing cash generation and increased profitability," analysts at Ativa stated in a report.

Sabesp shares rose 2,62 percent to 91,23 reais, as investors assessed quarterly results and the announcement of a tariff review for the São Paulo sanitation company.

Abroad, Wall Street recovered, amid renewed hopes that Cyprus will reach an agreement to receive a bailout from the European Union and avoid financial collapse. The S&P rose 0,72 percent. (By Danielle Assalve; Editing by Aluísio Alves)