UPDATE: Market Chatter: Uranium One, Cameco and Paladin Continue To Rise After Pro-Nuclear LDP Wins Japan Vote
Uranium One Inc. (UUU.TO), which mines the raw material used in reactor fuel, rose to its highest in six weeks in Toronto after Japan's pro-nuclear Liberal Democratic Party won a landslide election victory, Bloomberg reported.
Uranium One rose 4.5% to C$2.10 in Toronto yesterday, its highest since the end of October, and have edged up again today. But shares of the Vancouver-based company have declined 2.8% this year.
Cameco Corp. (CCO.TO), the world's third-largest uranium producer, rose 2.9% to C$19.84 yesterday and are up another 6 cents today. Paladin Energy Ltd. (PDN.TO), an Australian-based producer, climbed 11% to C$1.04 on Monday and have added another 9 cents today.
The LDP, led by Shinzo Abe, captured a two-thirds majority in Japan's lower house of parliament.
"The LDP governed Japan for much of the postwar period and is seen as being favorable towards nuclear power," Greg Barnes, a Toronto-based analyst at TD Securities Inc., said in a note to clients.
Japan moved to shut down its atomic reactors after last year's tsunami and earthquake triggered a meltdown at Tokyo Electric Power Co.'s Fukushima Dai-Ichi nuclear power plant. The LDP campaigned on Japan's need to restart the reactors to cut the cost of importing natural gas and coal to fire conventional power stations.
The spot price of uranium has fallen 36% since March 10, 2011, the day before the earthquake and tsunami struck.
Cameco was the third-largest uranium miner last year after Kazatomprom, Kazakhstan's state-owned producer, and Paris-based Areva SA, according to the World Nuclear Association.
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