Why is the Novonix share price rocketing 15% today?

It’s a good day to hold Novonix Ltd (ASX: NVX) stock, with the company’s share price rocketing 15% higher.

Its whopping gains come despite no news having been released by the S&P/ASX 200 Index (ASX: XJO) tech share. In fact, the market hasn’t heard any price-sensitive word from the battery technology and materials company since August.

Right now, the Novonix share price is $2.055, 14.8% higher than its previous close.

For comparison, the ASX 200 has lifted 1.29% at the time of writing.

So, what might be going right for the tech favourite? Let’s take a look.

What’s going on with the Novonix share price?

The Novonix share price is outperforming on Tuesday, coming in as the ASX 200’s best performer.

Its gain is slightly higher than the 14.6% surge posted by the Hub24 Ltd (ASX: HUB) share price. The financials stock revealed all the details of a record first quarter this morning.

Meanwhile, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is up 2.56% – making it the second best performing ASX 200 sector today. Its gain is slightly less than the 2.84% surge recorded by the S&P/ASX 200 Real Estate Index (ASX: XRE).

Of course, those invested in Novonix shares will likely be rejoicing at its latest lift. Particularly, as the stock hadn’t yet recovered from a disastrous September that saw it dump 27%.

Following that tumble, the tech share crashed to a 52-week low of $1.655 in early October. Yesterday saw it drop to $1.73 in intraday trade – its third lowest point of the last 12 months.

Much of the company’s recent suffering could be explained by Australia’s rising cash rate.

Rate hikes tend to up the stakes for growth shares, particularly those – like Novonix – that are yet to turn a profit.

Today’s gains included, the Novonix share price has fallen around 80% so far this year. It’s also lost approximately 60% since this time last year.

Meanwhile, the ASX 200 has fallen 11% year to date and 8% over the last 12 months.

The post Why is the Novonix share price rocketing 15% today? appeared first on The Motley Fool Australia.

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More reading

• The Novonix share price has just capped off a shocker first quarter. What’s next?
• Why did the Novonix share price crash 27% in September?
• Novonix share price shakes off losing streak to post second day of gains
• The Novonix share price sank to another 52-week low today. What’s been going so wrong?
• Here’s how ASX tech shares fared in September

Motley Fool contributor Brooke Cooper 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 Hub24 Ltd. The Motley Fool Australia has positions in and has recommended Hub24 Ltd. 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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