Ura­nium shares re­bound

Townsville Bulletin - - Investor -

AUS­TRALIAN ura­nium stocks bounced back on the lo­cal bourse af­ter a pos­i­tive jump on Ja­pan’s stock mar­ket.

How­ever, an­a­lysts warn that the re­cov­ery could be short­lived if Ja­pan’s nu­clear cri­sis wors­ens.

Tokyo shares closed up 3.88 per cent – down from ear­lier gains of around 6 per cent – amid re­ports that work to pre­vent the stricken Fukushima nu­clear plant from melt­ing down was sus­pended be­cause of high ra­di­a­tion lev­els.

The gains were driven by bar­gain-hunt­ing fol­low­ing the big­gest two-day sell-off on the Nikkei in­dex for 24 years. This was de­spite a fresh fire yes­ter­day in the No. 4 re­ac­tor at the Fukus him a plant that self eee­ex­tin­guished. CMC Mar­kets chief mar­ket strate­gist Michael Mc­Carthy said Aus­tralian ura­nium stocks re­gained be­tween a quar­ter and a third of their plunge on Mon­day and Tues­day.

Ura­nium miner Pal­adin En­ergy Ltd gained 44 cents, or 13.5 per cent, to $ 3.70.

The stock had fallen 17.47 per cent on Tues­day to its low­est since mid-March last year af­ter plung­ing 16.49 per cent on Mon­day.

Pal­adin, which does not have a com­mer­cial re­la­tion­ship with Ja­panese util­i­ties, said it con­tin­ued to be­lieve the medium and long-term out­look for nu­clear power re­mained pos­i­tive.

‘‘ Re­cent events could fur­ther ex­ac­er­bate the sup­ply sit­u­a­tion, iron­i­cally putting Pal­adin in an even bet­ter po­si­tion with re­spect to global de­mand,’’ the miner said yes­ter­day.

‘‘ There are more than 440 nu­clear re­ac­tors op­er­at­ing safely around the world and growth of the fleet is as­sured with the 62 re­ac­tors cur­rently un­der con­struc­tion.’’

Rio Tinto Ltd ma­jor­i­ty­owned En­ergy Re­sources of Aus­tralia, the world’s fourth largest ura­nium pro­ducer, was up 73 cents, or 10.33 per cent, at $ 7.80.

ERA stock sank 12.23 per cent on Mon­day and fell a fur­ther 14.3 per cent on Tues­day.

Among j unior ura­nium ex­plor­ers, Penin­sula En­ergy Ltd jumped 2.4 cents, or 40.68 per cent, to 8.3 cents while Ura­nium Eq­ui­ties Ltd put on 1.4 cents, or 16.47 per cent, to 9.9 cents.

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