ASX Trading Wrap: Uranium shares extend gains as the US eyes a supply boost
Rene Anthony
Key takeaways:
As the local market see-sawed throughout the week, uranium stocks took centre stage amid fresh developments in the United States for the industry
—
Which shares excelled?
These were the major winners over recent trading sessions:
Alumina (ASX: AWC) shares rallied strongly after the holding company announced Alcoa, its sole asset, will stop producing alumina at its Kwinana refinery by September, with investors spirited by the fact the site has been operating at a loss
Uranium shares Paladin Energy (ASX: PDN), Boss Energy (ASX: BOE), Energy Resources of Australia (ASX: ERA), and Deep Yellow (ASX: DYL) powered ahead for the second straight week following news the US intends to boost its domestic uranium output
In a trading update, fund manager GQG Partners (ASX: GQG) announced net inflows of US$1.8 billion in the most recent quarter, and record funds under management (FUM) of US$120.6 billion
South32 (ASX: S32) shares benefitted from a broker upgrade by Goldman Sachs, which lifted the stock to a ‘buy’ rating and $3.80 per share price target based on the broker’s forecasts for strong commodity prices to improve free cashflow and EBITDA in FY25
Some of this week’s other top performers were laser enrichment tech provider Silex Systems (ASX: SLX), mineral sands explorer Iluka Resources (ASX: ILU), and electronics retailer JB Hi-Fi (ASX: JBH)
Which shares dragged on the market?
These stocks weighed on the local market across the course of the week:
With US crude inventories posting a surprise rise in the week ending January 5, oil prices drifted lower during the week, weighing on local shares such as Strike Energy (ASX: STX), Karoon Energy (ASX: KAR), and Beach Energy (ASX: BPT)
Battery metals stocks didn’t fare so well over recent days, with the likes of IGO (ASX: IGO), Mineral Resources (ASX: MIN), Liontown Resources (ASX: LTR), and Lynas Rare Earths (ASX: LYC) all among the worst performers in light of risk-off sentiment
It was a disappointing week for Worley (ASX: WOR) shareholders, with the engineering services firm forced to deny corruption allegations made by Ecuador in a legal claim regarding the conduct of one of Worley’s subsidiaries in securing local contracts
Neuren Pharmaceuticals (ASX: NEU), Magellan Financial Group (ASX: MFG), and Tuas (ASX: TUA) also ended the week with notable losses
Important disclaimer: SelfWealth Ltd ABN 52 154 324 428 (“Selfwealth”) (AFSL 421789). The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser and/or accountant. Taxation, legal and other matters referred to on this website are of a general nature only and should not be relied upon in place of appropriate professional advice. You should obtain the relevant Product Disclosure Statement for any product mentioned and consider its contents before making any decision.
