Why the Clean TeQ (ASX:CLQ) share price fell 10% today

The Clean TeQ Holdings Limited (ASX: CLQ) share price slumped 10.5% lower today as ASX shares were hit hard by spooked investors.

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The Clean TeQ Holdings Limited (ASX: CLQ) share price was smashed today, slumping 10.53% lower.

beaten down shares

Image source: Getty Images

What does Clean TeQ do?

Clean TeQ is an Aussie metals recovery and industrial water treatment company. The group's proprietary Clean-iX continuous ion exchange technology is being used to deliver innovative environmental solutions.

The company has both Clean TeQ Sunrise, a metals and mining processing plant, as well as Clean TeQ Water, a water treatment division.

The Clean TeQ share price has been on an impressive bull run in recent months and is up 54.5% for the year. That means the Aussie company now boasts a market capitalisation of $253.8 million despite today's fall.

Why is the Clean TeQ share price is getting smashed

Today's share price decline comes amid a broader sell-off in Australian and global tech shares.

There have been heavy losses across the S&P/ASX 200 Index (ASX: XJO). However, the Clean TeQ share price has been hit hard as investors have sold out of the Aussie environmental technology group.

The ASX Industrials share started the day at a 52-week high but retreated quickly in the broader sell-off.

Why Clean TeQ's value has surged in 2020

Even accounting for today's hammering, the Clean TeQ share price is still up 54.5% this year.

That includes a huge run in recent weeks with shares in the environmental technology company surging 142.9% higher since its 24 August full-year results announcement.

The bullish run drew the attention of the exchange operator due to a surge in trading volume and share price.

There have been some big updates in recent months from Clean TeQ including an update on its Sunrise Nickel-Cobalt-Scandium Project.

According to the release, global electric vehicle sales surged in June and July after weaker Chinese sales in the first half of the year.

That is good for lithium and lightweight aluminium alloy demand in key transportation markets. 

Foolish takeaway

The Clean TeQ share price is one of many ASX shares under pressure today but remains up 54.5% for the year at $0.34 per share.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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