Uranium Shares Cheer Pro-Nuclear Japan
From Sky News
Uranium producer Paladin Energy’s shares shot up on Tuesday as a buoyant nuclear industry cheered the election of a Japanese government expected to more quickly turn the reactors back on.
The conservative, pro-nuclear LDP is expected to implement a more aggressive restart schedule after the Fukushima nuclear disaster of March 2011.
The disaster led to the shutdown of Japan’s reactors that represented 11 per cent of global demand, as well as the shutdown of Germany’s nuclear plant.
Both countries are among the world’s largest users of nuclear energy, which fell out of favour after Fukushima as uranium prices plunged.
A regulatory decision is expected in Japan in April.
Paladin was best-performing stock among the top 100 ASX equities climbing 12 cents, or 12.44 per cent, to $1.085 following an 8.4 per cent jump on Monday.
Swiss investment bank UBS upgraded the company to a buy, saying it saw market conditions improving for uranium.
Fellow miner Rio Tinto-owned Energy Resources of Australia, a bigger uranium producer than Paladin, was third-best among the ASX100 improving by nine cents, or 7.3 per cent, to $1.33.
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