Banco Bradesco SA, Latin America’s second-biggest lender by market value, rose the most in seven weeks after saying it renewed a stock buyback program to repurchase as many 15 million shares over the next year.
Bradesco purchased 742,180 shares under the buyback program’s initial period, according to a regulatory filing late yesterday. The bank’s decision to extend the term through the next 12 months is a sign that management considers the stock cheap after recent declines, according to Pedro Galdi, the chief strategist at Sao Paulo-based brokerage SLW Corretora.
“It also helps to increase liquidity, which is good for investors too,” Galdi said in a phone interview from Sao Paulo.
Bradesco has lost 11 percent this year, compared with a 16 percent drop by the MSCI Brazil Financials index during that period.
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