The share price of Miracle Industries has jumped 52 per cent in just seven sessions following the company's declaration regarding a resumption of operation.
The company has announced that it will resume operation on September 30.
The stock started to see appreciation from August 17. The announcement, which was made on August 21, led to an escalation of the stock price.
During this time, the Dhaka Stock Exchange (DSE) executed seven sessions and Miracle Industries exhibited almost a vertical movement.
Finally, the price closed at Tk 43.20 on Sunday, with a rise of Tk 15.
Asked about the rationality of the company's price hike, a senior official of an asset management company said such price hike was "theoretically possible".
"But practically it's tough to say whether the company will be viable just after resuming operation as it incurred a loss in the year before closing operations."
The company's operations remained suspended since July 2022.
It endured a loss of Tk 127.36 million in FY20.
"So, the price hike observed in just seven sessions is not justified," the asset manager said.
Previously, the company's share price declined to Tk 24.10 from Tk 34 between December 19, 2022 and March 23, 2023.
Later, the share price experienced volatility for four months and closed at Tk 28.8 on August 16.
Afterwards, the company exhibited almost a straight upward vertical movement until Sunday.
Before shutting down the operations, the company reported annual profits of Tk 7.71 million to Tk 36.58 million for FY16-FY19.
Miracle Industries, presently a 'B' category company, was listed on the bourses in 2000.
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