Fears of meltdown evaporate $1.5 billion off uranium stocks

Report that a containment system at the bottom of Unit 2 reactor at Fukushima Daiichi has been breached saw uranium companies shares to tank on the bourses on Tuesday.

Reuters reported that earlier in the day an explosion occurred at the nuclear plant's unit No. 2 reactor, damaging the containment system of the reactor called the suppression pool.

BBC reported that officials have referred to possible breach in the suppression chamber which would allow radioactive substance to escape through the crack.

The nuclear crisis triggered by a 9-magnitude earthquake that hit Japan on Friday has set the alarm button across the major nuclear energy producing nations calling for a closer scrutiny of their nuclear assets. While countries review roadmap of nuclear industry, major uranium producers and nuclear companies showed signs of duress.

Business Day reported that $1.5 billion was wiped out of the value of uranium stocks on reports of Japan's nuclear crisis.

NASDAQ reported that major uranium-miner stocks tanked 10 percent on Monday on fears that Japan's nuclear crisis could put plans of global nuclear renaissance in jeopardy.

Reuters reported that Cameco Corp. world's second largest uranium miner's stocks dipped 13 percent in active trading on Monday. The nuclear crisis in Japan resulted in a selloff in uranium shares.

WSJ reported that shares of Paladin Energy Ltd. Fell 16 percent and Energy Resources of Australia Ltd., a Rio Tinto-controlled company tanked 12 percent on Monday in Sydney on the back of expectations that a fall is imminent in short-term demand for uranium. Also, Extract Resources booked a 7-percent decline in its share value.

Even the shares of Uranium One, Canada's second largest uranium producer, closed down 27.68 percent on the Toronto Stock Exchange.

Financial Post reported that shares of Denison Mines Corp. and Uranium Energy Corp. dropped 24 percent and 20 percent respectively on Monday. General Electric and Hitachi lost about 2.3 percent.

Business Day reported that Uranium explorer Deep Yellow dropped 21 percent; Peninsula Energy fell more than 29 percent, while Toro Energy fell more than 23 percent.