📈 JKSB Forecasts ASPI to Hit 28,000 in 2026

John Keells Stock Brokers (JKSB) anticipates the All Share Price Index (ASPI) will reach 28,000 this year, driven by recurring earnings growth and stable macroeconomic reforms. • Market Performance & Valuation: The ASPI stood at 23,812 as of Friday, marking a 115% increase since September 2024. Market coverage indicates trading at 10.8x FY26E earnings, with a forward expectation of 9.2x for FY27E. Increased foreign participation and IPO activity are expected over the next 2-3 years due to attractive valuations. • Macroeconomic Outlook: GDP Growth: Forecasted at 4-5% for 2026. Inflation: Expected to remain muted at 4-5% in the second half of 2026. Fiscal Health: Primary fiscal surplus projected at ~4%; Revenue-to-GDP expected to rise from 15.6% to 16%. Credit & Consumption: Private credit growth is maintaining a rate of Rs. 200 Bn per month. • Key Economic Drivers: Sustained IMF program reforms and fiscal discipline. Growth in digitization and capital market deepening. Normalization of profit margins following the previous hyperinflation crisis.