Bradesco Rises Most in Seven Weeks in Sao Paulo on Buyback Plan

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.

The shares rose 1.6 percent to 28.45 reais at 12:51 p.m. in Sao Paulo after gaining 2.9 percent in the steepest intraday advance since May 7. The benchmark Ibovespa (IBOV) added 0.5 percent.

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.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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