It ended up being a fairly disappointing day for ASX shares and the S&P/ASX 200 Index (ASX: XJO) on Tuesday. As of market close, the ASX 200 went backwards by 0.38%, giving up the gains that we saw early in the session. But it was a different story for one of the ASX 200's incoming members Sayona Mining Ltd (ASX: SYA) shares.
The Sayona Mining share price ended up having a cracking day. The ASX lithium share closed at 25.5 cents apiece yesterday. But by the end of today's trading session, the company had risen to 27 cents per share, a healthy gain of 5.88%.
So what went so right for this ASX lithium up-and-comer?
Image source: Getty Images
Why did the Sayona Mining share price leap higher on Tuesday?
Well, we don't know for sure, unfortunately. There hasn't been much in the way of news or announcements from Sayona recently. Its most recent ASX release was put out after close last Friday, informing the markets that the company would be joining the ASX 200 index later this month.
However, we did get some news regarding one of Sayona's peers in the ASX lithium space today. This could have had an impact.
As my Fool colleague Tristan comprehensively covered this afternoon, brokers at JP Morgan have taken another look at the Pilbara Minerals Ltd (ASX: PLS) share price and liked what they saw.
The broker upgraded Pilbara shares to an outperform rating, with an improved 12-month share price target of $4.10. This upgrade is due to JP Morgan's view that the global lithium market will remain tight for many years to come, giving Pilbara (and other ASX lithium shares) a powerful tailwind.
The broker also raised its long-term forecast for lithium carbonate and spodumene prices by 20% and 25% respectively. This would also bode well for all ASX lithium shares.
Perhaps in response, the Pilbara share price rose a pleasing 7.03% today to $3.96 a share today. It also looks as though this optimism has flowed onto other ASX lithium shares, including the Sayona mining share price. No doubt that will be welcomed by shareholders.
At the last Sayona Mining share price, this ASX lithium share has a market capitalisation of $2.24 billion.
