Banco Bradesco SA, Latin America’s second-biggest lender by market value, rose the most in three weeks after saying it renewed a program to repurchase as many 15 million shares over the next year.
The stock rose 0.9 percent to 28.26 reais at the close of trading in Sao Paulo, the biggest one-day advance since May 31. The benchmark Ibovespa added 0.6 percent.
Bradesco purchased 742,180 shares under the buyback program’s initial period over the past six months, according to a regulatory filing late yesterday. The plan, announced in December, was scheduled to expire today. The Osasco, Brazil-based bank’s shares have lost 12 percent this year.
The extension is a sign that management considers the stock cheap, Pedro Galdi, chief strategist at Sao Paulo-based brokerage SLW Corretora, said in a phone interview from Sao Paulo.