It's been a strong day for the S&P/ASX 200 Index (ASX: XJO) so far this Monday. At the time of writing, the ASX 200 had gained a healthy 2% and is now back above 6,700 points. But it's been an even better start to the week for the Liontown Resources Limited (ASX: LTR) share price.
ASX 200 lithium stock Liontown has seen a pleasing 9% gain so far today to $1.0625 a share after the company closed at 98 cents last Friday. Since last Thursday, Liontown is now up close to 20%.
So what's going on today that might elicit such a strong outperformance of the ASX 200?
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Why is the Liontown share price rocketing 9% today?
Well, it's not entirely clear as there are no new developments out of the company itself. However, there is a clear trend emerging on the ASX today that looks to have swept up the Liontown share price. As my Fool colleague Brooke covered this morning, ASX 200 resources shares are amongst the top-performing ASX sectors right now.
And ASX lithium shares are leading the charge. In addition to Liontown's impressive gains, we also see the Pilbara Minerals Ltd (ASX: PLS) share price up 4.04%. Lake Resources N.L. (ASX: LKE) shares are up more than 8%, while Core Lithium Ltd (ASX: CXO) shares are doing even better, having risen almost 13% at the time of writing.
So it appears Liontown's stellar performance today is part of a wider trend.
This could be being helped by the bullish broker opinion on Pilbara recently. As my Fool colleague James covered yesterday, broker Ord Minnet retained its buy rating on Pilbara shares, complete with a share reprice target of $4.25. Ord Minnet reckons that the impressive offer of US$7,000 per tonne Pilbara received for its lithium spodumene last week bodes extremely well for lithium prices over the medium term.
If that turns out to be accurate, it would be good news for all ASX lithium stocks, not just Pilbara. So that could be why we are seeing such a rush into ASX lithium companies like Liontown today.
At the current Liontown share price, this ASX 200 lithium stock has a market capitalisation of $2.32 billion.
