Issue No.13

Markets Wrap

Local Equities

For the month ended August 2021, the TT Composite Index rose by 0.64%, led upwards by the Cross Listed Index which increased by 1.33%. The share prices of Jamaica Money Market Group limited (JMMBGL) and National Commercial Bank Financial Group (NCBFG) boosted the return of the index, climbing by 6.44% and 2.88% respectively. JMMBGL’s price was supported by a reported 148% increase in profit after tax for the three-month period ended June 2021. Over ten companies released financial results during the month. MASSY Holdings Limited and Republic Financial Holdings Limited reported improved performance whilst West Indian Tobacco Company and National Flour Mills reported a decline in EPS. The All T&T Index increased slightly, by 0.36% in August 2021, as gains in MASSY Holdings Limited and Trinidad Cement Limited were countered by declines in Prestige Holdings Limited and National Enterprises Limited. During the month 14 stocks increased, 9 declined and 2 held firm.

The Government recently announced an extension of the ‘State of Emergency’ by a further 3 months to November, causing business owners to lament over their restricted operating hours. The reopening of sectors has been slow with some businesses owners announcing permanent closures due the difficulty of operating under restrictions and the stop and start nature of the economy in the past 18 months. Over 30% of the population has been fully vaccinated with a choice of vaccines now easily accessible to all citizens over 12 years old. We continue to encourage persons to vaccinate as further advances in this area should bode positively for increased economic activity.

International Equities

 In a late August release, Federal Reserve Chair Jerome Powell announced that the Central Bank would likely begin reducing its monthly bond purchases later this year. Interest rate increases however, are not expected in the short term. The Fed is monitoring employment figures, which are still below pre pandemic levels despite increased hiring in the June and July months. Inflation has heated up as global supply chains remain disrupted and demand for goods and services have increased with re-openings. The rampant spread of the delta variant has led to a recent climb in vaccination rates across the US with approximately 74.5 % of adults now have received at least one dose of the vaccine, surpassing the target of 70% set by the Biden Administration.

A strong corporate earnings season continued in August with approximately 88% of the companies on the S&P 500 which released second quarter earnings have beaten analyst expectations. The S&P 500 Index reported a positive return of 2.90% during the month. Financials and Utilities were the top performing sectors during August, returning 5.7% and 3.2% respectively. Eleven sectors increased whilst just one sector, Energy, declined over the month. Investors are trying to predict both the trajectory and impact of the delta variant’s outbreak, as well as the implications of reduced policy support from central banks in upcoming months.



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T&T Composite















US 10Yr





YTD % ∆

Oil (WTI)



Nat Gas (HH)






Local Fixed Income

Short term TTD rates declined marginally over the month. The 1-year rate slipped downwards from 0.53% to 0.52%. The rate has ranged from 0.22%-0.54% since dropping from 2.08% in September 2020 when the Central Bank cut both reserve requirements and its repo rate to spur increased liquidity.

Throughout the first eight months of the year demand for plain vanilla GORTT securities remained strong. The corporate bond market remains dormant with few new issues having come to market despite the low rate environment. System liquidity currently stood at TT$7.6Nm, a marked increase from TT$5.9BN at July’s month end. 

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, grew by 1.43% over the month of August as investors reduced holdings. The US 10-year Treasury yield increased from 1.22% on July 31st to 1.31% on August 31st. US 10-year Treasury yields have been seesawing as investors speculate on the timing of reduced monetary support from central banks, an increase in interest rates, and the strength and pace of the global economic rebound.  Headline inflation has held above 4% since April. Whilst inflation may continue to remain near multi-decade highs throughout the end of the year, the Fed continues to believe that the price increases will prove transitory.

Market Highlights

The purchase of the operations of the Bank of Nova Scotia in Antigua and Barbuda by the Eastern Caribbean Amalgamated Bank has been completed. The purchase is bound by a transition services agreement which facilitates the sharing of services for a 12-18 month period to ensure a smooth transition.

Investment Buzz

A bear market occurs when the market experiences a decline of 20% or more over a sustained period of time. This usually occurs when  Economic prospects are declining and investor sentiment is low.


Mutual Funds

USD Funds

Scotia Money Market Fund


Scotia US Dollar Bond Fund


Scotia Caribbean Income Fund


Scotia US Equity Fund


Scotia Global Equity Fund


Scotia Canadian Equity Fund

TTD Funds

Scotia Trinidad & Tobago Fixed Income Fund


Scotia Trinidad & Tobago Growth and Income Fund


Scotia Trinidad & Tobago Short-Term Income Fund

Need more information regarding our Investment Solutions?

Speak with one of our investment specialists. 

Estelle Narine


Candice De Sormeaux


Adesha Gonzales


General Disclosures: 

This report has been prepared by Scotia Investments Trinidad and Tobago Limited (“SITT”), a subsidiary of Scotiabank Trinidad and Tobago Limited. It is provided to you, our clients, for information purposes only and may not be redistributed. The information herein is believed to be reliable and includes information from public sources also believed to be reliable. While the objective is to provide information in a fair, clear and non-misleading manner, SITT does not represent or warrant that any information in the report is free from errors or omissions. Opinions and projections in this report are the views of the author(s) as at the date of this report.

The views expressed are subject to change and SITT has no obligation to update, modify or amend this report or to otherwise notify a recipient thereof in the event that any opinion forecast or estimate herein changes or subsequently becomes inaccurate. Nothing contained in this report is or should be relied upon as a promise or representation as to the future. Neither SITT nor any of its officers, directors, partners, or employees accepts any liability whatsoever for any direct or consequential loss arising from the use of this report or any of its contents. The securities discussed in this publication may not be suitable for all investors.

This report is provided to you for informational purposes only. It is not an offer or a solicitation of an offer to buy or sell any securities or to participate in any trading strategy.  This report is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation or particular needs of any specific person. Investors should seek advice regarding the appropriateness of investing in securities and implementing investment strategies discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. Nothing contained in this report is or should be relied upon as a promise or representation as to the future. The information in this publication is not intended to predict actual results, which may differ substantially from those mentioned in this report. Scotia Investments Trinidad and Tobago Limited, its directors, or other officers may have a position in, or engage in transactions in any of the securities mentioned herein.