Why is the Liontown share price leaping 5% on Monday?

It’s been a positive start to the trading week so far this Monday for the S&P/ASX 200 Index (ASX: XJO). So far today, the ASX 200 has gained a decent 0.43% and is back over 7,060 points. But it’s been an even better start to the week for the Liontown Resources Limited (ASX: LTR) share price.

Liontown shares have charged out of the gate today. This ASX 200 lithium stock has gained a healthy 5.15% so far today and is now trading at $1.79 a share. That comes after the company closed at $1.70 a share last week and opened at $1.75 this morning.

So what might be eliciting this pleasing jump in valuation for Liontown shares today?

Well, it’s got nothing to do with any news or announcements out of the company itself, seeing as there are none today.

Why is the Liontown Resources share price on fire today?

However, we are seeing some big moves today with most of Liontown’s ASX lithium share peers. Pilbara Minerals Ltd (ASX: PLS) shares are enjoying a 2.4% boost today. Allkem Ltd (ASX: AKE) shares are up more than 2.8%. And Core Lithium Ltd (ASX: CXO) shares have exploded more than 10% higher to $1.62 a share.

It might be the latter company there that is to thank for these decisive share price rises. As my Fool colleague Brooke covered this morning, Core Lithium shares have rocketed after the company released an update on its exploration activities.

It was all good news, as Core Lithium reported promising spodumene results for its surface-level Anningie-Barrow Creek Project. It also reported a significant gold mineralisation at its Finniss Lithium Project. This is now estimated to hold up to, or even exceed, 18 million ounces of gold.

So good news for Core Lithium shares today. And it looks like this goodwill is spilling into the ASX’s other lithium shares like Liontown.

At the current Liontown Resources share price, this ASX 200 lithium stock has a market capitalisation of $3.92 billion.

The post Why is the Liontown share price leaping 5% on Monday? 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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