ASX uranium shares plummet amid Ukraine power station attack

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“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

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The S&P/ASX 200 Index (ASX: XJO) is suffering a red session on Friday amid an intensification of the situation in Ukraine. However, ASX uranium shares are showing up as some of the hardest-hit companies of all on the Australian share market.

At present, many uranium producers and explorers are trading 10% to 20% lower. This follows reports that one of Ukraine’s nuclear power stations — the largest in Europe — is on fire as a consequence of Russian attacks.

The shocking shelling of the Zaporizhzhia nuclear power plant (NPP) marks eight days since the beginning of Russia’s invasion of Ukraine.

What is going on with ASX uranium shares today?

It was only a few short months ago when we were reminiscing on the outstanding performances across ASX uranium shares in 2021.

At that time, uranium was beginning to step back into the spotlight as an answer to our climate changes woes. Though, with years of unattractive prices for the commodity, investments in creating new a new supply had been dampened.

However, with expectations of nuclear energy becoming a piece in the green transition puzzle, investors were willing to take a punt on ASX uranium shares.

That was until the latest development in the Ukraine-Russia conflict. Unfortunately, with fears of the Zaporizhzhia NPP evolving into another Chernobyl-like disaster, it seems people have been reminded of what soured nuclear energy’s momentum all those years ago.

While the power plant boasts better safety infrastructure than Chernobyl, the consequences of a fault could also be larger. According to Ukrainian foreign minister Dmytro Kuleba, “If it blows up, it will be 10 times larger than Chernobyl.”, he said in a Tweet calling for a ceasefire.

Companies copping the brunt of bad news

Currently, ASX uranium shares are being sold off hard. Here’s how some of these companies are tracking:

• Boss Energy Ltd (ASX: BOE) down 13.7%
• Paladin Energy Ltd (ASX: PDN) down 12.2%
• Deep Yellow Limited (ASX: DYL) down 14.9%
• Peninsula Energy Ltd (ASX: PEN) down 14%

Finally, the situation in Zaporizhzhia NPP is still evolving as more information transpires. The latest updates suggest firefighters have been unable to combat the fire due to the ongoing conflict.

The post ASX uranium shares plummet amid Ukraine power station attack appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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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