Joy Global has seen its largest spike since 2011 on the back of market takeover rumours.
The mining machinery manufacturer’s price rocketed from US$ 60.23 to US$65.98 per share yesterday, a 9.5 per cent leap.
According to Bloomberg the company refused to comment on the takeover rumours in the market.
The share price movement is welcome news for the company, which has seen a series of poor years financially.
Earlier this year Joy announced a large drop year on year for its first quarter, falling 65 per cent between the two first periods of the year.
Highlighting the shrinking demand for capital equipment in the mining industry, Joy recorded a 42.7 per cent drop in original equipment orders compared to the first quarter of 2013, with demand falling from US $436.2 million to US $250.1 million.
This fall was felt most keenly in underground equipment, which saw close to a 24 per cent slump in sales, dropping from US $598.8 million in January 2013 to US $451 million this year.
Surface mining equipment did not fare much better, recording a 13.8 per cent decline year on year, with bookings slumping from US $502.9 to US $433.5 million. Joy added that surface mining equipment was hit by an additional US $16 million fall due to the impact of foreign exchange compared to last year.
Much of this downward movement was due to decreased demand in Australia and North America, although the machinery did see an increase in bookings across South American, Eurasia and China.