Why is the Paladin Energy (ASX:PDN) share price crashing 14% today?

Shares in the ASX 200 uranium miner are plummeting today.

Key points
  • The Paladin Energy share price has tanked today
  • Paladin's fall seems related to the nuclear power plant fire in Ukraine
  • Investors' confidence in the uranium sector has been shaken

A message from our CIO, Scott Phillips:

"G'day Fools. If you're like us, you're dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we'll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine."

————

The Paladin Energy Ltd (ASX: PDN) share price has had a disappointing end to the trading week so far this Friday.

At the time of writing, Paladin shares are down by 14.24% at 73.75 cents a share. However, that includes a strong intra-day recovery that we've seen this afternoon.

At one point during the trading day, Paladin shares fell as low as 64 cents each, which was a drop of more than 20%. In contrast, the S&P/ASX 200 Index (ASX: XJO) is also down, but only by 0.86% at just under 7,100 points.

So what's going on with this ASX energy share today?

Young man in shirt and tie staring at his laptop screen watching the Paladin Energy share price tank today

Image source: Getty Images

What's happening to the Paladin Energy share price?

Well, it appears likely this drop is partially a consequence of the disturbing reports coming out of Ukraine today.

As my Fool colleague Mitchell reported earlier today, the Zaporizhzhia nuclear power plant in Ukraine has come under shelling from Russian forces. As a result, the plant reportedly caught fire, prompting Ukrainian President Volodymyr Zelensky to warn of a possible "catastrophe". Although, according to more recent reporting by the ABC, the US Energy Secretary, Jennifer Granholm, has advised that the plant is "protected by robust containment structures and reactors are being safely shut down".

Paladin is an ASX 200 uranium miner. As such, it's likely that such a serious incident at a nuclear plant has shaken confidence in the global nuclear power industry, of which Paladin is a part.

Paladin isn't the only ASX uranium share experiencing this kind of selling pressure today. We've also seen similar moves in the share prices of Boss Energy Ltd (ASX: BOE), Deep Yellow Limited (ASX: DYL) and Peninsula Energy Ltd (ASX: PEN) over the course of the trading day.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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