Investors Stay Bullish on Frontier Markets After Banner Year
Signage for the Colombo Stock Exchange (CSE) in Colombo, Sri Lanka.
Photographer: Buddhika Weerasinghe/BloombergFrontier markets will likely extend their impressive rally into next year, thanks to investor optimism about economic recovery and reduced risks of sovereign defaults.
Asia Frontier Capital Ltd., a Hong Kong-based fund manager focused on the region’s high-growth economies, is buying stocks in Sri Lanka and Bangladesh. Aberdeen Group Plc sees potential for bond gains in Argentina, Ghana and Ecuador next year, while Federated Hermes Inc. has increased exposure to frontier bonds and favors debt from Nigeria, Sri Lanka, Pakistan and Ecuador.