It's been a depressing start to the week for ASX shares this Monday. At market close, the All Ordinaries Index (ASX: XAO) has lost more than 1.2% of its value. But it's been even worse for the Vulcan Energy Resources Ltd (ASX: VUL) share price.
Vulcan shares have finished the day down a painful 6.1% at $5.39 a share, pitifully underperforming the broader markets. So what's going on with this ASX lithium stock?
Well, we can't quite be sure. There's been no news out of Vulcan today at all. We haven't heard from the company since its announcement last week.
At the time, Vulcan announced that it had entered into an agreement with an Italian renewable energy company, Enel Green Power, to "explore the development of the Cesano licence". Enel took a 50% stake in the Cesano license, which is close to Rome in Italy. On Friday last week, we covered how the Vulcan share price lept 8% on this news.
Why is the Vulcan share price down 6% today?
But after today's movements, Vulcan shares have given up Friday's gains and more. At today's closing share price of $5.39, Vulcan shares are now down 48% in 2022 so far. The company also just recorded a loss of almost 30% for the 2022 financial year.
So perhaps we can explain Vulcan's losses by looking at the other ASX lithium shares on the market. And we do seem to be seeing a pattern. Vulcan is not the only ASX lithium stock bleeding today.
Take Pilbara Minerals Ltd (ASX: PLS). Its shares finished down 2.55%. Core Lithium Ltd (ASX: CXO) lost 3.16%, while Liontown Resources Limited (ASX: LTR) fell 2.94%.
So even though Vulcan's losses are far more than its peers, it seems the company has just been swept up in a rejection of ASX lithium stocks by investors today. No doubt shareholders will be hoping for a better day tomorrow.
At the current Vulcan Energy Resources share price, this ASX lithium stock has a market capitalisation of more than $768 million.
