For NSE to test 7000pts the index has to rally at least 40%. That means the 20 counters that compose the index have to perform extremely well with some rallying 100%. Mpesa bank being the largest weight component of the index needs to rally hard in order to pull the index up and cancel out the index laggards like KQ. Most of the index component are weak in 2015 since they reflect the econ slump reality.
How will derivatives boost the econ slowdown conditions that these firms operate in to rally the index by 2000pts from 5000pts level? Infact these derivatives will be a nice tool to bring down some inflated counters running on fumes.
Is wanjiku ready to meet short selling if she can't even compute simple financial analysis? This will be a rude wake up call.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!