A quote from Tradetech appeared to strike fear into the heart of the uranium stocks sector recently along the lines of:

“Uranium spot market volume was relatively low for the month of April. Overall, activity in the spot uranium market was extremely slow during the second half of the month due, in large part, to the announcement by NYMEX that it would launch a uranium futures trading contract on May 7. Sellers became even more reticent to submit spot offers due to increased uncertainty about future price movement and the potential effect of futures trading on price reporting and outstanding market-related offers. As a result, the severe upward price momentum witnessed early in April had largely dissipated by month-end. TradeTech’s Exchange Value is US$113.00 per pound U3O8.”

Our stocks then went through a bout of selling which knocked the stock prices down.

However on Thursday they staged a decent recovery as evidenced by a glance at the closing uranium stock prices, for example:

AXU Up 3.69%, RPT Up 19.74%, LAM Up 6.32%, KRI Up 6.5%, etc.

The introduction of Futures Contracts have had a delaying influence on transactions as purchasers will want to wait and see. So next week when it gets under way we will see what the effect really is.