Oct. 12 (Bloomberg) -- PDG Realty SA Empreendimentos & Participacoes, Brazil’s biggest homebuilder by revenue, headed to its highest price in almost a month in New York as the European Union laid out plans to recapitalize banks, fueling gains for stocks with low valuations.

PDG’S American depository receipts jumped 11 percent to $7.94 at 12:29 p.m. New York time, the highest since Sept. 15. Brazil’s stock market was closed for a holiday.

Rio de Janeiro-based PDG trades in Sao Paulo at 6.9 times analysts’ earnings estimates. Its ratio was as low as 6 on Oct. 3, after dropping from this year’s high of 16.5 in January. The benchmark Bovespa index trades at 9.4 times earnings estimates, down from a January high of 12.2.

“PDG has been a beaten down stock, even though its fundamental story has been quite good,” said Greg Lesko, who helps oversee over $800 million at Deltec Asset Management in New York. “If the world is short of capital and freaking out, then these stocks go down quite a bit. But if those concerns are being alleviated, you get the opposite reaction.”

Global stocks rose as European Commission President Jose Barroso called for a reinforcement of crisis-hit banks, the payout of a sixth loan to Greece and a faster start for a permanent rescue fund to master Europe’s debt woes. Barroso urged a “coordinated approach” to deliver a “significantly higher capital ratio of highest quality capital” for banks, while offering government funds only as a last resort.

The Standard & Poor’s 500 Index gained 1.4 percent to 1,212.42, its highest intraday level since Sept. 20.

--Editors: Richard Richtmyer, Glenn J. Kalinoski

To contact the reporter on this story: Leon Lazaroff in New York llazaroff@bloomberg.net

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