Good morning,

Uranium stocks are having a glow-up.

On Tuesday, two big pieces of news came across our desk – the first Citibank trading a big line of Paladin Energy stock before the market open, and then late in the afternoon, Boss Energy chasing nearly $200 million to bankroll an M&A bet.

It follows Terra Capital fund manager Jeremy Bond tipping uranium play Nexgen Energy at the Sohn investment conference last month, causing a 4.8 per cent jump in the stock price.

For a tiny part of the ASX resources market, that’s a lot of activity.

As we wrote today, uranium’s popularity is seeing a resurgence across the globe as economies seeking replacements for traditional sources of energy look past nuclear disasters, including Fukushima in 2011. While the demand for uranium has risen, the supply has remained constricted after decades of underinvestment in bringing new mines online.

Uranium stocks have been on a tear this year as uranium prices surge to their highest level in more than a decade – Paladin Energy up 53 per cent, Boss Energy soaring 104 per cent, Nexgen Energy +50 per cent, Deep Yellow +50 per cent and Bannerman Energy +70 per cent. A Global X ETF tracking global uranium mining and production companies is up 37 per cent over the past year.

Fund managers are taking notice. Maple Brown Abbott small caps fundie Phillip Hudak reckons the tide is turning for uranium thanks to growing global political support, the need for energy security following Russia’s invasion of Ukraine and increasing demand. He says 2022 was a “watershed year” in the political landscape for nuclear energy, pointing to the US Inflation Reduction Act supporting nuclear power as a clean energy source and Europe accepting nuclear as green energy.

Arnott Capital has also highlighted uranium as a key long-term thematic (for several years).

MBA’s top pick: Boss Energy

Happy reading,

• Listed uranium developer Boss Energy was chasing nearly $200 million in fresh equity to bankroll a transaction after market close on Tuesday evening.
• Medibank Private is set to become the controlling shareholder in GP clinics chain Myhealth after months of negotiations, valuing the business at $200 million.
• LGT Crestone, the ex-UBS wealth management business, has lifted five advisers from rival Escala Partners.
• UBS has overseen 20 per cent of all block trades for the year with over $650 billion going through its desk, while JPMorgan has risen quickly up the ranks.

• Deutsche Bank is using a lull in dealmaking to hire more bankers and revive a business that has slumped down the mergers and acquisitions league tables.
• Origin Energy’s board is facing demands to consider a demerger, a beefed-up transition plan and higher dividend payouts after the collapse of a $20 billion takeover plan.
• SoftBank is buying an Irish group specialising in broadband for cars, placing a bet on driverless vehicle technology, according to a report in Bloomberg.

Equity sales, and block trading in particular, have become an increasingly fragmented market amid increased competition from global investment banks and smaller broker-dealers.

Click here for the latest equity market wrap.