Insights

Here’s why the Vulcan Energy share price is sinking 12% today?

Vulcan Energy shares have taken a pounding in recent times.
The post Here’s why the Vulcan Energy share price is sinking 12% today? appeared first on The Motley Fool Australia. –

The Vulcan Energy Resources Ltd (ASX: VUL) share price is deep in the red on Tuesday despite no company announcements.

At the time of writing, the clean lithium developer’s shares are down 12.36% to $5.635.

For context, the broader S&P/ASX 200 Index (ASX: XJO) is sinking 4.37% to 6,629.2 points following heavy falls on Wall Street overnight.

Vulcan Energy shares plummet to 52-week low

Investors are heading for the exits, sending the Vulcan Energy share price to a new 52-week low during trade on Tuesday.

Fears are mounting about an incoming recession next year as inflation continues to spike across global economies.

Last Friday, the release of the United States consumer price index report indicated that inflation rose 8.6% in May. This was above the 8.3% forecast and the highest level in 41 years.

Subsequently, economists are predicting that a recession will likely occur in the early part of 2023.

The Federal Reserve is now more than likely to quickly raise the official cash rate to help ease inflationary pressures. However, this spells bad news for stocks as investors jump ship to better risk and reward alternatives such as government bonds.

With the Dow Jones entering bear market territory, the ASX has followed suit.

The old age saying, “When America sneezes, Australia catches a cold” couldn’t be more right.

The S&P/ASX 300 Metals and Mining (ASX: XMM) industry is currently down 5.81% to 5,654.5 points. This represents a fall of close to 8% in the past week.

Late last month, Goldman Sachs released a bearish report on lithium which sent shockwaves across the battery metals market.

The broker forecasted that lithium prices will sink to around US$16,000 per tonne in 2023. This is a stark contrast compared to the US$71,000 per tonne that is being traded at the moment.

It’s no wonder that with all this negative sentiment that Vulcan Energy shares touched a 52-week low of $5.23 today.

About the Vulcan Energy share price

Since this time last year, the Vulcan Energy share price has dropped by 36% following a difficult couple of months.

Based on today’s price, Vulcan Energy presides a market capitalisation of approximately $741.82 million.

The post Here’s why the Vulcan Energy share price is sinking 12% today? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

See The 5 Stocks
*Returns as of January 12th 2022

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

3 ASX All Ordinaries shares that have surged 300% in the past year
Which ASX lithium shares are producing and which are not?
Why is the Vulcan Energy share price tumbling 6% today?
3 ASX mining shares billionaire John Hancock is buying for rising inflation and the energy transition
Here’s why the Vulcan share price is charging 6% higher

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex Securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info