4 ASX 200 stocks rocketing 19% to 43% in this week's slumping market

Investors are piling into these four ASX 200 stocks despite the broader market decline. But why?

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Key points

  • Despite a 1.6% weekly decline in the ASX 200 Index, four ASX lithium stocks have surged due to rising global lithium prices driven by increased demand for EV batteries and grid storage.
  • Mineral Resources rose 18.7% after striking a $1.2 billion deal with POSCO Holdings for its lithium mines, while Pilbara Minerals saw a 30.3% increase as lithium carbonate prices climbed.
  • IGO Ltd and Liontown Resources led gains in the lithium sector, with increases of 36.2% and 42.8% respectively, showcasing the strong weekly performance of lithium stocks amidst a sliding broader market.

With less than three hours of trade left in the week the S&P/ASX 200 Index (ASX: XJO) is down 1.6% since last Friday's close, but don't point the finger of blame at these four surging ASX 200 stocks.

This week's top performers all have one thing in common.

Namely, they all explore for and produce lithium.

Many ASX 200 stocks have come under pressure this week as hopes for more near-term interest rate cuts from the RBA and US Fed fade. But ASX lithium stocks have shrugged off those concerns amid resurgent global lithium prices.

Lithium carbonate prices gained more than 5% over the week and are currently trading at three-month highs. Investor sentiment for the sector has improved amid signs of increased demand for batteries to power EVs and for grid storage, spurred by new support measures for EVs recently announced by China.

And ASX lithium stocks have been among the top beneficiaries.

Here's what I mean.

ASX 200 stocks racing higher in this week's falling market

The first outperforming stock on my list is Mineral Resources Ltd (ASX: MIN).

Mineral Resources shares closed last Friday trading for $42.56. At time of writing, shares are changing hands for $50.54 each. This sees the Mineral Resources share price up 18.7% over the week.

Mineral Resources is the only one of our top performers to release any market sensitive news this week.

Shares in the ASX 200 stock closed up 9.2% on Wednesday after the miner reported it had inked a $1.2 billion deal with Korean-based POSCO Holdings for interests in its lithium mines.

As the Motley Fool's Cameron England reported on the day, Mineral Resources said it will sell a 30% interest in a new joint venture company. The JV company will then hold its 50% interests in the Wodgina and Mt Marion lithium mines, located in Western Australia.

Mineral Resources will continue to operate both mines under existing agreements with its other JV partners.

Moving on to the second ASX 200 stock racing higher despite the sliding market, we have Pilbara Minerals Ltd (ASX: PLS).

Pilbara Minerals share closed last week trading for $2.93 and are currently trading for $3.82 each. That sees the Pilbara Minerals share price up a whopping 30.3% since last Friday's close.

While that's an impressive weekly gain, the IGO Ltd (ASX: IGO) share price flew even higher over the week.

IGO shares closed last Friday trading for $4.99 and are currently swapping hands for $6.80 apiece. This puts the IGO share price up 36.2% in just under five days of trading.

Which brings us to…

Leading the pack

The top performing ASX 200 stock for the week on my list is Liontown Resources Ltd (ASX: LTR).

Shares in the ASX lithium stock closed last week at $1.02. At time of writing, shares are trading for $1.46 apiece.

This puts the Liontown share price up a blistering 42.8% in this week's sliding market.

Which all goes to reinforce my belief that you can always find a good investment opportunity somewhere. Even when the broader market is in decline. You just have to know where to look.

Motley Fool contributor Bernd Struben 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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