Why did the Vulcan Energy share price crater 28% in June?

The Vulcan Energy Resources Ltd (ASX: VUL) share price had a difficult time in June, trading lower and lower as the month went on.

Investors pushed the Vulcan share price of $7.52 on 1 June to a low of $5 by 17 June. It had recovered slightly by month’s end but finished 28% down.

What’s up with the Vulcan share price?

Vulcan started the month poorly amid a bearish note from Goldman Sachs on its outlook for the lithium industry.

Goldman reckons battery metals’ have likely peaked and that prices could reverse at pace.

The research sent lithium shares spiralling in early June, despite no change to company forecasts.

Vulcan was hit hard on the chart alongside its peers with exposure to the sector.

The share continued to track lower and by 14 June had reached 52-week lows as inflation data and interest-rate pressures began to weigh on ASX shares.

By month’s end, the trend had set in and sentiment had no doubt turned bearish, in lockstep with the tone in just about all markets. Weakness in the United States also appeared to have an impact.

On 29 June investors were selling down the Vulcan share price “amid broad market weakness following a poor night of trade on Wall Street,” The Motley Fool reported.

Vulcan is a “higher risk share,” The Motley Fool says, and investors are lowering “their risk appetite following a resurgence in recession fears”.

In the last 12 months, the Vulcan share price has collapsed more than 31% into the red.

The post Why did the Vulcan Energy share price crater 28% in June? appeared first on The Motley Fool Australia.

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More reading

• Down 8%, why is the Vulcan Energy share price burning away today?
• How is the Vulcan share price performing against its sector this month?
• 3 ASX All Ordinaries shares going gangbusters on Friday
• Why Betmakers, Block, Lake Resources, and Vulcan shares are racing higher
• ASX 200 midday update: Qantas’ market update, lithium shares rebound

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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.

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