Why is the Boss Energy share price melting 8% lower?

The Boss Energy Ltd (ASX: BOE) share price is having a woeful day on the ASX.

At the time of writing, the uranium producer’s shares are swapping hands at $2.68, down 7.90%.

This comes as the broader Aussie stock market is also tumbling on the back of bearish sentiment after Wall Street sank overnight.

Shares in fellow miners, Paladin Energy Ltd (ASX: PDN) and Deep Yellow Ltd (ASX: DYL) are down 4.44% and 8.37%, respectively.

What’s causing Boss Energy shares to fall today?

Investors are offloading the Boss Energy share price after uranium prices have continued their descent in the past few days.

Otherwise known as ‘yellowcake’, the heavy metal is fetching for US$50.85 per pound, a drop of 0.68% from the previous close.

At the beginning of the week, uranium was being traded around US$52.68 before the energy sector tanked.

For context, the S&P/ASX 200 Energy (ASX: XEJ) sector is the worst performer across the ASX today with a 4.11% decline.

In addition, the Global X Uranium ETF (URA) nosedived by 4.04% last night. The index fund covers a number of companies involved in uranium mining and the manufacturing of nuclear equipment.

This comes as investors have pulled out of the commodity markets in fear of the Fed Reserves’ impending rate hike.

When interest rates are lifted, this puts pressure on the stock market.

Nonetheless, as reported by my Fool Colleague Brooke the current global energy crisis could have a positive impact on uranium in the medium-term.

Boss Energy share price snapshot

Despite today’s losses, the Boss Energy share price is up 20% in 2022.

However, when looking over the past 12 months, the share is relatively flat.

Based on today’s price, Boss Energy presides a market capitalisation of roughly $1.03 billion.

The post Why is the Boss Energy share price melting 8% lower? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX uranium shares getting smashed on Friday?
• ASX uranium shares have had a stellar month. Are they just getting started?
• What’s the outlook for ASX uranium shares in September?
• 2 ASX uranium shares added to the ASX 300 today
• Could this tiny development add even more fuel to ASX uranium shares?

Motley Fool contributor Aaron Teboneras has positions in Paladin Energy Ltd. 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 Scott Phillips.

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