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Here’s why ASX uranium shares are booming double digits across the board on Wednesday

ASX uranium shares are running to the moon this morning.
The post Here’s why ASX uranium shares are booming double digits across the board on Wednesday appeared first on The Motley Fool Australia. –

ASX uranium shares are surging across the board on Wednesday following a bullish overnight session for uranium.

ASX uranium shares jump double-digits on open

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN) is currently up 18.4% to 87 cents. After ceasing operations at its “globally significant” Langer Heinrich mine in 2018, the company is looking to restart operations to take advantage of the improving uranium market.

Advanced uranium explorer Deep Yellow Limited (ASX: DYL) is up 16.2% to $1.05. The company has been carrying out exploration activities at it Tumas Project since 2016, and during that time, has expanded its resource by more than threefold. Deep Yellow is targeting the completion of its definitive feasibility study in the latter part of 2022.

On the speculative end of town, players such as Bannerman Energy Ltd (ASX: BMN), Lotus Resources Ltd (ASX: LOT), Vimy Resources Ltd (ASX: VMY) and Alligator Energy Ltd (ASX: AGE) are also joining in on the buying frenzy, surging between 15% and 25%.

What’s driving the uranium sector?

Overnight, the Global X Uranium Exchange Traded Fund (ETF) surged 11.65% to US$26.92. The ETF is now within an arms reach of its previous 7-year high of US$28.72.

This move comes off the back of its highest volume day since inception, with over 6.1 million shares traded.

To add some perspective, its 10-day average volume currently sits at around 2.2 million shares.

50% of the fund is allocated towards Canadian players, including the world’s largest listed uranium player Cameco.

The fund also has its fair share of exposure of ASX-listed players including Paladin Energy, Boss Energy Ltd (ASX: BOE), Bannerman Energy, Deep Yellow and more.

The strong capital inflows into the uranium ETF signal a renewed level of investor interest after its September peak.

Investors might want to keep an eye out for Sprott Asset Management and its Twitter for any updates about buying more uranium off the spot market.

The post Here’s why ASX uranium shares are booming double digits across the board on Wednesday appeared first on The Motley Fool Australia.

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More reading

Why the Paladin Energy (ASX:PDN) share price is up 8% today
Why ASX uranium shares are bouncing back on Friday

What’s going on with the Deep Yellow (ASX:DYL) share price today?
Deep Yellow (ASX:DYL) share price slides 4% despite major ore reserve milestone
Which ASX 300 shares are on the move for the start of the week?

Motley Fool contributor Kerry Sun 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.

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