Why is the Lake Resources share price sinking 7% on Monday?

The Lake Resources N.L. (ASX: LKE) share price is deep in the red alongside plenty of its S&P/ASX 200 Index (ASX: XJO) peers.

The index is suffering a sell-off event on Monday with mining stocks among the worst hit.

Right now, the Lake Resources share price is 92.5 cents, 6.57% lower than its previous close.

For comparison, the ASX 200 has plummeted 1.4% at the time of writing.

What’s going so wrong for the ASX 200 lithium hopeful? Let’s take a look.

What’s weighing on the Lake Resources share price?

Shares in Lake Resources are plummeting on Monday amid a terrible session for ASX 200 mining stocks.

The S&P/ASX 200 Materials Index (ASX: XMJ) is currently the index’s second worst performing sector, behind only the S&P/ASX 200 Energy Index (ASX: XEJ).

The energy sector has dumped 6% at the time of writing, likely driven lower by falling oil prices.

Meanwhile, the materials sector is falling 4.6%. Its downturn appears to have come on the back of growing recession fears. And Lake Resources’ stock is among its worst performers.

The stock has now dumped all of the 6% gain it clocked up last week after updating the market on its Kachi Lithium Project.  

On top of that, it has been underperforming the broader market over the course of this year so far.

The Lake Resources share price is currently 15.1% lower than it was at the start of 2022. The ASX 200, meanwhile, has dumped 14.5% year to date.

Longer-term investors can still boast a strong gain, though. The stock has lifted 54% over the last 12 months while the index has fallen 12%.

The post Why is the Lake Resources share price sinking 7% on Monday? appeared first on The Motley Fool Australia.

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More reading

• Here’s which ASX lithium shares investors have been loading up on this month
• Why has the Lake Resources share price been so volatile lately?
• Which ASX lithium shares are performing best in 2022?
• Here are the top 10 ASX 200 shares today
• Guess how many companies in the ASX 300 actually make no money

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 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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