Lake Resources share price defies rout to leap 14%

This soon-to-be ASX 200 lithium share outperformed the broader market by a mile today.

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A man clenches his fists with glee having seen the Lake Resources share price go up on the computer screen in front of him.

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Key points

  • The Lake Resources share price dodged today's market carnage, gaining 13.6% to $1.59
  • That's despite no news having been released by the company. However, it is set to join the ASX 200 later this month
  • Today's gains included, the stock has lifted 45% so far this year 

The Lake Resources (ASX: LKE) share price dodged today’s market carnage despite the company’s silence.

Lake Resources closed Tuesday’s market session at $1.59, up 13.6% on its previous close.

For context, the broader market was sold off today after Wall Street and key cryptocurrencies tumbled on Monday.

The S&P/ASX 200 Index (ASX: XJO) finished down 3.5% while the All Ordinaries Index (ASX: XAO) plunged 3.7%. 

Let’s take a closer look at what’s going on with this lithium explorer.

What lifted the Lake Resources share price today?

Lake Resources would top the ASX 200 performance charts on Tuesday if not for one thing. The company isn’t included in the index – yet.

It’s set to join the ASX 200 on 22 June in the quarterly rebalance.

The company’s impending index inclusion might have bolstered its share price today. Becoming part of an index means funds tracking the index will be forced to buy Lake Resources shares in the coming weeks.

However, fellow ASX lithium share Core Lithium Ltd (ASX: CXO) is also set to join the index on 22 June, but it didn’t revel in today’s trade. It finished the session down 2.41% at $1.215.

Today’s gains included, the Lake Resources share price is 45% higher than it was at the start of 2022. It has also gained 558% since this time last year.

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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