May 29 (Bloomberg) -- Marcopolo SA, Brazil’s biggest bus maker, climbed the most since October 2008 on speculation a drop of as much as 27 percent this year was excessive considering the prospects for the company.
The shares surged 14 percent to 4.35 reais at the close of trading in Sao Paulo, leading gains on the BM&FBovespa Small Cap Index. Trading volume was eight times the three-month daily average.
Marcopolo’s jump pared this year’s losses to 15 percent, compared with a 1.4 percent increase for the benchmark Ibovespa. Brazil’s Monetary Council said this week it was increasing the financing limit for urban transportation projects that are part of the government’s economic stimulus program by 2 billion reais ($901 million) to 21.4 billion reais.
“The shares are trading way below what they’re actually worth,” Henrique Kleine, the head equity analyst at brokerage Magliano SA in Sao Paulo, said in a telephone interview. “The outlook is good. Investors, especially foreign investors, are taking a second look at it.”
The Caxias do Sul, Brazil-based bus maker said May 23 that Norges Bank had increased its stake in the company to 5.5 percent of preferred shares.
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