It ended up being a pretty dreary day for ASX shares and the All Ordinaries Index (ASX: XAO) this Tuesday. By the end of trading, the All Ords had slipped by 0.1% down to just under 7,550 points. But it was a different story altogether when it came to the Arafura Rare Earths Ltd (ASX: ARU) share price.
This All Ords rare earths share had an absolutely cracking day today. Arafura closed at 60 cents each yesterday and opened at 62 cents this morning. But by the end of the session, the company was commanding a share price of 66 cents each, a pleasing 9.09% lift.
So what on earth went on today that prompted this dramatic rise in Arafura's value?
Image source: Getty Images
Why was the Arafura share price on fire today?
Well, unfortunately, it's not entirely clear. There hasn't been any major news or announcements out of Arafura this week so far.
However, we have seen some similar, albeit not quite as enthusiastic moves, amongst some of Arafura's nearest and dearest. Its larger cousin Lynas Rare Earths Ltd (ASX: LYC) also had a good day, rising by 1.2% to $8.43 a share.
And we also saw some big moves in the lithium space.
Leading lithium stock Pilbara Minerals ended up lifting by 4.52% to $4.39 a share. Sayona Mining Ltd (ASX: SYA) was up 4.88% to 21.5 cents a share, while Liontown Resources Limited (ASX: LTR) was up close to 4%.
So it looks like investors were just caught up in a wave of goodwill towards future-facing ASX shares in the lithium and rare earths space today. That is the best explanation we have for why the Arafura Rare Earths share price had such a cracking Tuesday.
But this only continues the absolutely stellar year this company has had so far in 2023. Year to date, Arafura is now up an impressive 47% or so, smashing the returns of the broader market:
Earlier this month, my Fool colleague Brooke looked at some of the reasons investors have been buying into Arafura of late, so make sure to check that out.
No doubt investors will be hoping that this run for the Arafura share price continues.
