March could be a big month for these ASX uranium shares – they’ve been recognised as two of the exchange’s largest companies.
Boss Energy Ltd (ASX: BOE) and Deep Yellow Limited (ASX: DYL) will join the All Ordinaries Index (ASX: XAO) on 21 March.
Right now, the Boss Energy share price is $2.36. That of Deep Yellow is 85 cents.
Interest in the companies might also be boosted by news of Australia’s future nuclear-powered fleet, released this week.
Let’s take a closer look at what all this could mean for these ASX uranium shares.
Could these ASX uranium shares be in for a big month?
Boss Energy and Deep Yellow shares could be boosted when the ASX uranium companies are added to the All Ords.
Their addition to the All Ords could see trading of their stock intensify for a period. That’s because funds tracking the All Ords will need to buy in to continue reflecting the index.
Additionally, fund managers mandated to trade only in All Ords constituents might turn their attention to the ASX uranium shares.
The index tracks the 500 largest companies on the ASX, representing nearly 90% of the exchange’s value.
According to the ASX, Boss Energy has a market capitalisation of around $673 million.
Meanwhile, Deep Yellow’s valuation is approximately $329 million.
The companies might also be in the spotlight this week amid news of Australia’s planned nuclear-powered submarine fleet.
Neither company is publicly involved with the fleet. However, news on the nuclear-powered vessels tends to draw attention to the ASX uranium sector.
Prime Minister Scott Morrison announced yesterday a new submarine base will be built on Australia’s east coast.
The cost of the new base – to be located in Brisbane, Newcastle, or Port Kembla – is unclear.
However, the Department of Defence estimates more than $10 billion will be needed to support the shift to nuclear-powered submarines.
On top of that, the ASX uranium shares might be in the spotlight on news Australia could acquire nuclear-powered submarines earlier than expected.
Defence Minister Peter Dutton signalled the government’s decision on which submarines to acquire under the AUKUS alliance could be finalised within months, according to reporting by the ABC.
The minister also noted the fleet could be in operation before 2040 – as is currently expected.
The post Why these 2 ASX uranium shares could be set for a boost this month appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper 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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