Why did the Pure Hydrogen share price pop 21% today?

The All Ordinaries Index (ASX: XAO) ended up having a pretty decent day of trading on Tuesday.

By the market close, the All Ords had added a robust 0.30% to reach just over 7,278 points. But one ASX share fared far better. That was the Pure Hydrogen Corporation (ASX: PH2) share price.

Pure hydrogen shares had a cracking day today. The clean energy company ended up closing at 34.5 cents a share, up a rather extraordinary 21% from the 28 cents the company closed at yesterday.

Not only that, but Pure Hydrogen rose as high as 39 cents in intraday trading – a rise worth almost 40%.

So what might have caused this stellar share price performance?

Well, the answer is sadly unclear. There hasn’t been any news or announcements at all out of this company today. Or indeed this week.

But a few other things happened on the markets today which could have spilled over into the Pure Hydrogen share price.

Why did the Pure Hydrogen share price rocket 21% today?

The first is the news out of AGL Energy Ltd (ASX: AGL) and Fortescue Metals Group Limited (ASX: FMG). As my Fool colleague Tristan covered earlier today, these two ASX companies have joined forces in building a hydrogen plant in New South Wales.

Today we got the news that “two of Japan’s largest energy companies, Inpex Corporation and Osaka Gas have joined an expanded feasibility study that is looking at creating a green hydrogen and ammonia hub at AGL’s Hunter Energy Hub”.

This interest in Australian hydrogen is hardly bad news for Pure Hydrogen.

Another factor to consider is the renewed interest in lithium stocks on the ASX this week. Lithium stocks have had a breathtaking run over the past few trading days, despite any real catalysts to speak of.

Take the Lake Resources N.L. (ASX: LKE) share price. It’s gone from 93 cents last Friday to $1.24 as of today’s close – a gain worth almost 33% in just two days.

We’ve seen similar (if not quite as dramatic) moves from other lithium shares like Core Lithium Ltd (ASX: CXO) and Liontown Resources Limited (ASX: LTR). Hydrogen and lithium don’t have too much in common apart from a potential role in a cleaner energy future.

But it’s very possible that positive sentiment from the lithium sector has spilled over into the Pure hydrogen share price today regardless.

Whatever the reasons for Pure Hydrogen’s stellar day, it will no doubt be welcomed by investors.

The post Why did the Pure Hydrogen share price pop 21% today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen 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.

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