Market Extra: ETFs that buy uranium-related stocks lose steam after sharp gains following coup in Niger

by | Aug 1, 2023 | Stock Market

Exchange-traded funds that provide investors exposure to uranium are up sharply so far this week in the wake of a military junta overthrowing the president of Niger, a significant supplier of the metal, even as they lost some steam on Tuesday.  The Global X Uranium ETF
ended 0.7% lower Tuesday, while the Sprott Uranium Miners ETF

finished flat, according to FactSet data. But both funds have advanced sharply so far this week, with the Global X Uranium ETF up around 2.6% and the Sprott Uranium Miners ETF climbing 3.7%.

Niger, a country in West Africa, has ranked among the biggest uranium producers globally, data on the World Nuclear Association’s website show. Uranium powers commercial nuclear reactors that generate electricity and is also used to produce isotopes for medical, industrial and defense purposes, according to the U.S. Energy Department.  Members of Niger’s military staged a coup in the country in late July, with president Mohamed Bazoum being replaced by General Abdourahmane Tchiani, the Associated Press reported. The Washington Post reported on Monday “a group of West African nations has threatened military intervention in Niger if ousted President Mohamed Bazoum is not returned to power by Aug. 6.”  The top holding of the Global X Uranium ETF, which tracks an index of companies involved in uranium mining and the production of nuclear components, was Canada’s Cameco Corp. at the end of July, according to data on Global X’s website. The fund’s next largest holdings included Sprott Physical Uranium Trust , …

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