The Sayona Mining Ltd (ASX: SYA) share price is lifting this morning despite no market-sensitive news on Monday.
At the time of writing, the Sayona share price is up 2.94% at 26.25 cents.
In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is pushing more than 1% higher from the open.
Image source: Getty Images
Sayona added to ASX 200
Following its quarterly rebalance last Friday, the Standard & Poor's (S&P) Down Jones Indices released the updated lists for the S&P/ASX indices.
Various indexes track different portions of the market, from industry/sector, company size, asset class, or even investment theme.
The S&P/ASX 200 Index (ASX: XJO), for example, is an index that represents the largest 200 ASX-listed companies by market capitalisation, and tracks their performance over time.
There are numerous other inclusion criteria as well, ranging from stipulated trading volume to volatility in share price.
Sayona's market capitalisation nudged past the $2 billion mark at the close last Friday, a gain of almost 100% from January 2022 to date.
This comes after a wide range in prices from 38 cents in April this year to lows of 11.5 cents on 24 June.
However, with the June bounce in risk assets such as stocks, Sayona has also caught a bid and is testing three-month highs once more.
Sayona's inclusion in the benchmark index also puts it on the radar of various large Australian fund mandates, which are restricted to buying ASX 200 shares only.
This includes superannuation companies. It, therefore, stands to reason there could be some buying activity in the Sayona share price in the weeks and months to come.
What that means is that Sayona shares are likely to see routine purchases from these kinds of institutional funds to fulfil their mandates – especially for the super funds.
What does this mean for the Sayona share price?
However, what this means for movement of the share price, we won't know for some time.
Nonetheless, any further upside would add to an already impressive year for Sayona, with its share price up more than 100% for the year to date, and 22% in the past month.
That's well ahead of all benchmarks, and a solid bedrock for the share's inclusion in the index.
In the past 12 months, the Sayona share price has gained 69.66%. Its return against the benchmark index over this time is plotted below.
