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The Lake resources NL (ASX:LKE) stock price is up today.
At the time of writing, the ASX lithium share is up 10.5%.
Shares of Lake Resources closed yesterday at $1.52 and are currently trading at $1.68.
With these intraday gain factors, shares of Lake Resources are up 566% since this time last year.
What moves the Lake Resources stock price?
Over the past year, investors have been bidding on most ASX lithium stocks.
Strong interest is driven by fast-growing electric vehicle markets, with lithium being a central element of the batteries that power them.
Today’s jump in Lake Resources stock price also appears to be linked to the upcoming rebalancing between the ASX indices, including the S&P/ASX 200 Index (ASX:XJO).
This is important for Lake Resources, as the company will be added to the ASX 200 from next Monday, June 20.
Investors are looking to anticipate rebalancing with an eye on future earnings.
Among these advantages, companies included in the ASX 200 are better studied by analysts and receive more media attention.
Importantly, Lake Resources’ share price could benefit because its shares can be bought by funds that are limited to investing in the broadest segment of the market. On top of that, ASX 200 index funds will add shares of Lake Resources to their holdings.
Rival ASX Lithium Sharing Core Lithium Ltd (ASX:CXO) will also be added to the ASX 200 next Monday. Its shares are up 8.2% at the time of writing.