AFC Asia Frontier Fund said the Colombo Stock Exchange (CSE) would continue to continue its market rally with strong earnings this year.
“In terms of relative performance, we believe South Asian frontier markets like Bangladesh, Pakistan, and Sri Lanka will outperform in 2024 as these economies are coming out of a crisis, will see an earnings rebound, and have deeply discounted valuations,” it said in a report recently.
“Pakistan and Sri Lanka are well positioned for a continued stock market rally in 2024 since we forecast large interest rate cuts in Pakistan next year while lower interest rates begin to positively impact Sri Lanka,” it added.
Accordingly, the Fund announced intentions to increase its exposure to Pakistan and Sri Lanka in the first quarter of 2024. (NF)