Why the Vulcan Energy (ASX:VUL) share price is in the spotlight this week

This lithium developer's shares are on watch this week…

| More on:
industrial asx share price on watch represented by builder looking through magnifying glass

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Vulcan Energy Resources Ltd (ASX: VUL) share price has come into the spotlight again this week.

Not that it ever really lost the spotlight.

With the lithium developer's shares up 422% since the start of the year, it has been getting a lot of attention from investors.

Why is the Vulcan Energy share price in the spotlight this week?

The Vulcan Energy share price was given an additional boost this week when S&P Dow Jones Indices announced changes to the S&P/ASX Indices. These changes will be effective prior to the open of trading on 20 September and follow S&P Dow Jones Indices' quarterly review.

According to the release, the lithium developer's shares will be added to the S&P/ASX 300 Index (ASX: XKO) at the next rebalance.

It is one of 12 new additions to the index, along with fellow lithium explorer Liontown Resources Limited (ASX: LTR) and battery materials focused company Novonix Ltd (ASX: NVX).

Why is this good news for Vulcan Energy?

Being added to an index like the ASX 300 can be a big positive for a company's shares.

This is for two reasons. The first is that index funds or ETFs that track the index will have to purchase shares. This buy-side pressure could give the Vulcan Energy share price an additional boost in the coming days and weeks.

Another reason is that many fund managers have strict investment mandates. This means they can only buy shares from certain indices.

This means that any fund managers that were restricted from buying shares outside the ASX 300, will now be able to consider Vulcan shares.

Though, with the Vulcan share price up so much since the start of the year, they may well wait for a pullback before considering an investment.

Should you invest $1,000 in Boss Resources Limited right now?

Before you buy Boss Resources Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Boss Resources Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Motley Fool contributor James Mickleboro 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 Bruce Jackson.

More on Resources Shares

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Resources Shares

Did you catch what happened with the big 3 ASX 200 mining stocks in April?

BHP, Rio Tinto, and Fortescue all reported their latest mining results in April.

Read more »

Miner looking at a tablet.
Resources Shares

After its earnings result, what's Macquarie's price target on Fortescue shares?

Let’s dig into what Macquarie thinks of Fortescue after its quarterly update.

Read more »

Two mining workers on a laptop at a mine site.
Resources Shares

The Mineral Resources share price is down 72% in a year. Time to pounce?

Two top experts ran their slide rules over Mineral Resources shares. Here’s what they found.

Read more »

Miner looking at a tablet.
Resources Shares

Mineral Resources share price shoots 15% higher on third-quarter report

The ASX 200 iron ore and lithium giant has released its 3Q FY25 activities report.

Read more »

Image from either construction, mining or the oil industry of a friendly worker.
Resources Shares

Why Macquarie says this ASX 200 mining stock could rocket 67% in a year

Macquarie forecasts a big potential rebound for this diversified ASX 200 miner.

Read more »

Female miner smiling at a mine site.
Resources Shares

3 reasons why the Fortescue share price could still be a buy

Here’s why I view Fortescue as an opportunity.

Read more »

A man wearing a hard hat and high visibility vest looks out over a vast plain where heavy mining equipment can be seen in the background.
Resources Shares

Here's the latest earnings forecast out to 2029 for Rio Tinto shares

Let’s unearth what this mining giant is predicted to achieve.

Read more »

Female miner smiling in front of a mining vehicle.
Resources Shares

Is the BHP share price a buy? Here's UBS' view

Let’s dig into what an expert thinks of this mining giant.

Read more »