(Reuters) - Shares of Australian casino operator Star Entertainment jumped 13.6% higher on Monday, with analysts citing the rise to investors buying the stock at a cheaper price after it fell to a record low last week.

The stock rose to A$0.125, surging as much as 22.7% during the session. It fell to a record low of A$0.10 on Friday, and has slumped nearly 50% in the last two sessions.

"The rise in Star's share price today is likely buying the dip and traders working the market as opposed to fundamental news flow driving the share price rise," said Grady Wulff, a market analyst at trading platform Bell Direct.

"The combination of speculating a turnaround and shorting are likely the drivers behind Star's most recent share price volatility and today's rise."

The company's shares tanked last week after it a flagged liquidity and cash crunch in the wake of an ongoing debt agreement.

The firm has already drawn down A$100 million ($61.4 million) of its new A$200 million debt facility from lenders.

Star's current financial situation makes it difficult for the company to fulfill requirements for the second drawdown, it said earlier this month as it explores other liquidity options.

Star said that the cash available at the end of December stood at A$79 million, down from A$149 million at the end of September.

"I think investors who are seeing a chance to buy at these levels may be hoping that an outside party/company can be found to come in and save the day for Star Entertainment. Whether that possible scenario comes to fruition remains to be seen," said Tim Waterer, a market analyst at KCM Trade.

Overall, the historically low price levels for Star Entertainment have caught the attention of buyers despite the current negativity surrounding the stock, he said.

Star's stock was down more than 63% in 2024. It has so far lost about 34% this year.

($1 = 1.6289 Australian dollars)