Traders caught on hop again
DEAR oh dear, another day, another company surprises the market.
On the face of it, Kenmare Resources' third quarter management statement caught markets on the hop when the company warned the short- term market for illmenite, a form of titanium, would be more challenged than expected.
Traders responded by selling fast, sending the company stock down 5.2pc in London and 7pc here.
But should the market have been surprised? Other rare earths miners have warned about a softening market for their goods in recent weeks and everyone has seen the data about a slowdown in the key Chinese market.
We have spoken before about the perils of surprising the market but perhaps it is unfair on Kenmare in this case. Traders are paid to see danger and get out ahead of trouble. It is they who have failed in this case.