Because this is a bit of a fake rally. US stocks finished up 3% but Aussie stocks struggled to move forward.
This means that Australian investors are buying the pops but lack conviction to take it much further forward. Mostly because of the backdrop that shows Europe, Greece etc are still unresolved, the market has rallied on empty rhetoric.
Just compare KZL to some blue chips as it was supposed to be a big up day for the banks:
- KLZ up 1.14% - ANZ up 0.952% - NAB up 0.665% - WPL up 0.113% (oil was up 3-4% in the US)
KZL needs a few more of these reports and to finalize Lizard to shake the shackles of negativity off - going forward (6mths). I would expect clarity and volatility to end for the markets mid November in Europe. However, we have 4 weeks of turbulence ahead.
KZL Price at posting:
44.0¢ Sentiment: Buy Disclosure: Held
