Here’s why the Sayona share price is up 10% today

What’s driving the lithium company’s shares higher on Wednesday?

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Key points

  • Sayona shares accelerate 10% to 29.7 cents 
  • With no news from the company, the benchmark index is surging ahead which is providing support for the Sayona share price 
  • Sayona shares are registering the biggest gains across the lithium sector 

The Sayona Mining Ltd (ASX: SYA) share price is charging ahead during mid-Wednesday afternoon despite no news from the company.

At the time of writing, the emerging lithium producer’s shares are up 10% to 29.7 cents.

What’s powering Sayona shares forward?

Following a rebound on the S&P/ASX 200 Index (ASX: XJO) today, investors are bidding up the Sayona share price.

In contrast, the ASX 200 Index is up 0.84% to 7,172.3 points after strong gains were recorded on Wall Street overnight.

Although the last release from the company came in late April, Sayona shares were pounded last week.

Falling to a 6-week low of 22 cents, it appears investors believe the share price was trading at attractive levels.

It’s worth noting that Sayona shares are significantly down their all-time high of 39 cents reached on 19 April.

Looking at its peers, Allkem Ltd (ASX: AKE) is up 2.24% and Liontown Resources Limited (ASX: LTR) is 3.53% higher.

Furthermore, fan favourite Lake Resources N.L. (ASX: LKE) is treading 3.08% above yesterday’s close.

A catalyst as to which Sayona shares are storming much higher could be because of the large discount from where it was trading a few weeks ago.

Sayona share price snapshot

Since this time last year, the Sayona share price has soared by 840% in value.

In 2022, the company’s shares have continued their impressive trajectory, up 130%.

The robust gains have come on the back of renewed optimism in the lithium market in recent times.

Based on valuation grounds, Sayona Mining has a market capitalisation of roughly $1.83 billion.

Motley Fool contributor Aaron Teboneras 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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