Zambian manganese producer Kaboko Mining produced one of the more outrageous percentage share price changes on the market today as stock with a value of only $500 changed hands to produce a 67% gain. The move could easily be reversed but is a timely reminder of how leveraged some of the smaller resources stocks are to a change in market sentiment. The small resources share price index remains awkwardly positioned in a downtrend but also consistent with the beginnings of a turning point that could recapture some of the 67% decline in the index since early in 2011. Kaboko is more a caricature of what could happen than a typical example but the macro data do point to the balance of risks in this part of the market beginning to shift. That would normally lead to a rising frequency of these somewhat wild Kaboko-like swings.
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