Why has the Lynas (ASX:LYC) share price just hit a 9-year high?

The rare earth producer’s shares are enjoying a strong finish to the week

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Friday is proving to be another great day on the ASX for the Lynas Rare Earths Ltd (ASX: LYC) share price.

The company’s stock hit a new multi-year high today despite the company maintaining its silence.

At the time of writing, the Lynas share price is $7.98, 1.79% higher than its previous close.

However, earlier today it shot up to reach $8.09, representing a 3.1% gain and a new 12-month record high.

For context, the S&P/ASX 200 Index (ASX: XJO) is also gaining today. It’s currently 1.06% higher. Meanwhile, the All Ordinaries Index (ASX: XAO) has also surged 1.06%.

Let’s take a closer look at what’s going on with the Lynas share price lately.

Why is the Lynas share price up on Friday?

There’s no obvious explanation for the surge in the rare earth producer’s stock today. Particularly, as the last time the market heard price-sensitive news from the company was nearly 2 weeks ago.

Then, Lynas announced it had received word from Japan Australia Rare Earths (JARE) reconfirming its support for the company.

Since then, and including today’s rise, the Lynas share price has gained another 6%. However, the company’s stock isn’t alone in the green today.

Right now, the S&P/ASX 200 Materials Index (ASX: XJR) is the best performing of the bunch, sporting a 2.54% gain.

In fact, much of the sector is leaving Lynas in its dust on Friday.

Right now, it’s being led by the share prices of Champion Iron Ltd (ASX: CIA) and Gold Road Resources Ltd (ASX: GOR). They are showcasing gains of 4% and 5% respectively.

Only 2 of the sector’s members are in the red today. They are St Barbara Ltd (ASX: SBM) and Newcrest Mining Ltd (ASX: NCM). Their share prices have both fallen 0.6% and 0.7% respectively.

Right now, the Lynas share price is 90% higher than it was at the start of 2021. It has also gained 21% over the last 30 days.  

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 Bruce Jackson.

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