ASX shares are enjoying a rather pleasant Wednesday so far after the nasty selloffs we saw earlier in the week. At the time of writing, the All Ordinaries Index (ASX: XAO) is up a healthy 0.92% at just over 7,300 points. But that's nothing compared to the Boss Energy Ltd (ASX: BOE) share price.
At the time of writing, Boss shares are currently up by a very pleasing 11.9% at $2.54 each. That's a pretty convincing trounce of the broader market. So what's going on with this ASX uranium share today?
Well, it's not the result of anything the company itself has said, so rule that one out.
Instead, this dramatic share price jump could be the result of some news that came out yesterday from S&P Global. S&P Global is the company responsible for running major share market indexes around the world. Two of those happen to be the All Ords and the ASX 200 – the flagship indexes for the ASX share market.
Boss Energy share price rises amid All Ords entry ticket
Last week, S&P announced that Boss Energy would be in amongst dozens of companies that will join the All Ordinaries Index as of March 21. This is part of S&P's quarterly index rebalancing. Indexes like the All Ords reflect the largest ASX shares by market capitalisation. In the All Ords' case, it consists of 500 ASX shares. But market caps move around all the time (in line with share prices), so a list of the ASX's 'largest 500 shares' is ever-changing.
Well, Boss makes the cut this time around. Thus, it will soon be a proud card-carrying member of the All Ords. This can have large benefits for a company since many managed funds or index funds can only select All Ords shares as part of their mandates. This might be why we are seeing renewed interest in Boss shares today, perhaps helped by the market being back in the green today.
But, as my Fool colleague Brooke covered yesterday, a government announcement of the construction of a new nuclear submarine base could also be assisting. This has no direct impact on Boss Energy at this stage. But, as covered yesterday, it's possible that an announcement of this kind shifts attention to uranium shares like Boss.
Whatever the reasons for Boss shares' stellar performance today, it has no doubt pleased many shareholders.
At the current Boss Energy share price, this ASX uranium share has a market capitalisation of $722 million.
