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If you’re looking for a reason why Boss Energy (ASX:BOE), Deep Yellow (ASX:DYL), SILEX Systems (ASX:SLX) and Bannerman Energy (ASX:BMN) have been notably up-and-down over the last week – look no further than uranium prices on the NYMEX.
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In fact, all four of those Australian stocks were among the top gainers of the day on the ASX intraday on Friday.
That’s quite a different situation from last week, when a majority of those stocks were the biggest fallers last Friday – even as uranium prices began to rise.
Last Friday, I wrote that it appeared profit takers were moving in on uranium stocks, perhaps fully cognisant of the fact that future gains could be locked in as the market digested uranium price action on the NYMEX.
Just a short week later, it appears that may have been true.
But why are uranium prices rising in the first place? Unsurprisingly, Donald Trump is involved… because of course he is.
While it feels (to me at least) markets might be getting weary of Trump headlines – or perhaps paying closer attention to U.S. 10-year bond yields, heading for around 4.5% – there has been one story this week playing out in the background.
Trump’s attention has turned to the nuclear industry – and you bet, there’s an Executive Order for that. At least according to a report from Reuters.
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The news will surely be received well by shareholders exposed to ASX stocks working in the uranium space, especially if they’ve been holding since the start of last year when uranium briefly surpassed US$100/lb.
So will this be the trigger for a new valuation on the price of the nuclear energy feedstock mineral? That remains to be seen – but what is more or less certain is that anybody who took profits last Friday probably feels pretty clever a week later.
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