Insights

Why ASX uranium shares are diving double-digits on Monday

The uranium sector is cooling off today. Here’s why.
The post Why ASX uranium shares are diving double-digits on Monday appeared first on The Motley Fool Australia. –

ASX uranium shares have pulled back sharply on Monday following a weak open for the S&P/ASX 200 Index (ASX: XJO).

Steep declines for the uranium sector

ASX uranium shares opened to a sea of red on Monday.

The largest ASX-listed uranium player, Paladin Energy Ltd (ASX: PDN), is currently down 14.56% to 88 cents.

Energy Resources of Australia Limited (ASX: ERA) is another large uranium player, down 6.19% to 45.5 cents.

Advanced explorers such as Boss Energy Ltd (ASX: BOE) and Deep Yellow Limited (ASX: DYL) are down double digits, sinking 15.94% and 15.69% respectively.

At the smaller end of town, explorers such as Peninsula Energy Ltd (ASX: PEN), Bannerman Energy Ltd (ASX: BMN) and Vimy Resources Ltd (ASX: VMY) are also logging consistent declines, all down around 15% or more.

92 Energy Ltd (ASX: 92E) is the only ASX uranium share to tip higher, surging 28.3% to $1.025 after announcing a uranium discovery at its Gemini Project.

What’s driving ASX uranium shares lower?

ASX 200 selloff

The ASX 200 is currently down 1.55% to a 2-month low of 7,289.

From iron ore to lithium, nothing is safe with a 4.3% plunge in the S&P/ASX Materials (INDEXASX: XMJ) Index.

The weakness in both the broader market and resources sector is likely a contributing factor in the panic taking place across ASX uranium shares on Monday.

Uranium sector pulls back

The Global X Uranium ETF (NYSE: URA), which invests in a broad range of companies engaged in uranium mining and nuclear components tumbled 7.83% last Friday.

The fund’s top holdings include the world’s largest listed uranium company, Cameco Corporation, and the world’s largest producer, Kazatomprom.

Both Cameco and Kazatomprom fell sharply last Friday, down 6.53% and 4.42% respectively.

The fund also holds a number of ASX uranium shares including Paladin Energy, Boss Energy, Bannerman Energy, Deep Yellow and Peninsula Energy.

The post Why ASX uranium shares are diving double-digits on Monday appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Why the Paladin Energy (ASX:PDN) share price is down 15% on Monday
This week’s top ASX share versus top altcoin winner revealed

ASX uranium shares boom to multi-year highs, bull market is just getting started: analyst

The Paladin Energy (ASX:PDN) share price rockets 5% to 9-year high. Here’s why
92 Energy (ASX:92E) share price jumps 11%, up 400% since IPO. Here’s why.

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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!