Uranium One Inc. (UUU), which mines the raw material used in reactor fuel, advanced the most in 16 months in Johannesburg trading after the pro-nuclear Liberal Democratic Party won a landslide election victory in Japan.
Shares in the Vancouver-based company jumped 13 percent, the most since August 2011, to 18.29 rand by the close in Johannesburg. More than 50,000 shares traded, almost three times the daily average over the past three months.
The LDP captured a two-thirds majority in Japan’s lower house of parliament in a Dec. 16 poll. The party campaigned on Japan’s need to restart atomic reactors, shut down after last year’s tsunami and earthquake triggered a meltdown at Tokyo Electric Power Co. (9501)’s Fukushima Dai-Ichi nuclear power plant, to cut the cost of importing natural gas and coal to fire conventional power stations.
“The Japanese election has given it a bit of a boost going into the end of the year,” Brandon Sacks, a Johannesburg-based trader at Avior Research Pty Ltd., said by phone. “It is one of those stocks that guys will start liking now.”
The uranium producer’s 30-day historical volatility, a measure of stock swings, increased to 53.53 from 40.91 on Dec. 14. The FTSE/JSE Africa All Share Index’s 30-day volatility measure was at 8.61 from 8.51 previously. A higher reading means an asset’s price can have bigger moves. South Africa’s markets were closed for a public holiday yesterday.
To contact the reporter on this story: Stephen Gunnion in Johannesburg at email@example.com
To contact the editor responsible for this story: Vernon Wessels at firstname.lastname@example.org