Why is the Core Lithium share price sliding 4% today?

The Core Lithium Ltd (ASX: CXO) share price is drifting lower in early trade on Friday.

At the time of writing, shares in the lithium player have tracked 4% lower to now rest at $1.44 apiece on no market-sensitive news.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is also trading down 160 basis points on the day.

What’s up with the Core Lithium share price?

Shares of Core Lithium have regressed lower today amid a wide sell-off across the broad indices on the ASX.

In fact, yesterday’s top performing sector, energy, is today’s laggard, trailing the other ASX sectors by the most in early trade.

The selling activity has been felt in Core Lithium today. Investors have pushed the share lower at a trading volume of 40% of the 4-week trading average in just a little more than 1 hour of trading.

Zooming out, and it’s been a tremendously busy week for shares trading on the ASX.

Chief to the downside pressure was hotter-than-expected inflation data out of the U.S. on Tuesday, signalling further rate increases from the US Federal Reserve in months to come.

The shock inflation print sent an impulse throughout global equity markets, and ASX shares were themselves put in the washing machine and hung to dry.

Unsurprisingly, a risk-off tone has swept through the Australian markets this week and this has seen a wide sell-off across a broad spectrum of sectors.

Energy, materials and mining have been particularly scorched, whilst defensives such as healthcare have traded in a narrow range.

With that, it’s unsurprising to see unprofitable lithium names such as Core undergo a small consolidation today.

The Core Lithium share price also nudged its 52-week high of $1.66 on 13 September, after making the pilgrimage from 52-week lows of 39.5 cents on 5 October 2021.

Despite today’s price action, the share remains up more than 144% this year to date and has clipped a 217% gain in the past 12 months.

The post Why is the Core Lithium share price sliding 4% today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Core Lithium share price tumbling 3% today?
• Here are the top 10 ASX 200 shares today
• Why did the Core Lithium share price leap another 6% on Tuesday?

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 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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