Issue No.12

Markets Wrap

Money Tree

Local Equities

For the month ended July 2021, the TT Composite Index rose by 1.06%, led upwards by the Cross Listed Index which increased by 3.47%. The share prices of Grace Kennedy Limited (GKC) and FirstCarribean International boosted the return of the index, climbing by 13.89% and 4.67% respectively. GKC’s price was propelled by a reported 30.3% increase in profit after tax for the six-month period ended June 2021. Additionally, First Citizens Bank and Guardian Holdings Limited reported improved performance whilst NCB Financial Group reported a decline in EPS due to increased operating expenses and tax charges. 

The All T&T Index increased modestly, by 0.09% in July 2021, as gains in National Enterprises Limited and Prestige Holdings Limited were countered by declines in Republic Financial Holdings Limited and Scotiabank Trinidad and Tobago. During the month 13 stocks increased, 7 declined and 5 held firm. The government has again extended restrictions and curfews, further delaying the start of any economic bounce post Covid-19. Several businesses have closed permanently, and unemployment is rising due to the lengthy lockdown period. There are signs of vaccine hesitancy over the past month with the pace of vaccinations slowing. On a positive note over 400,000 persons have received at least one dose of the vaccine.

International Equities

Earnings season commenced in the past month causing stocks to rise as investors balanced mixed corporate earnings against the threat to the economic recovery from the spread of the Delta virus variant. US stocks remain at and near all time highs with many believing that a pullback in stimulus will not happen in the short term. The rate of vaccination increased by 16% in the last week of July as restrictions such as mask requirements were reinstated in several states. New York recently announced that entry into restaurants, gyms and leisure events will require proof of vaccination. The S&P 500 Index reported a positive return of 2.27% in July 2021. Health Care and Real Estate were the top performing sectors during July, returning 5.9% and 4.8% respectively. 

Six sectors increased whilst five sectors declined during the month. The energy sector was the laggard, pulling back -9.6%. US Economic fundamentals have been strong, for instance the unemployment rate is expected to decline from 5.9% to 5.7% in July. Year over year personal income grew by 2.3% and consumer spending increased 13.6%. The US economy grew by 6.4% in the first six months of 2021 and has a consensus estimated growth of 6.9% for the second half of the year. However rising fears in the market surrounding the Delta variant could hamper the recovery if governing bodies reverse the opening of the economy.



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Oil (WTI)



Nat Gas (HH)






Local Fixed Income

Short term TTD rates dipped slightly over the month. The 1 year rate moved downwards from 0.54% to 0.52%, significantly lower than a rate of 2.08% a year ago. Throughout the first half of the year demand for plain vanilla GORTT securities remained strong. The corporate bond market remains dormant with little signs of new corporate issues in the next month. Meanwhile liquidity inched upwards over the month and currently stands at approximately TT$7.9BN. 

International Fixed Income

US Investment grade corporate spreads, as measured by the CSI BBB Index, fell by 3.63% over the month of July. The US 10 year treasury yield fell from 1.47% on June 30th to 1.22% on July 30th. U.S 10-year treasury yields continue to retreat as the Fed holds accommodation in place while virus associated risks to the global economic recovery remain. In July headline inflation increased by 4%, the most in over a decade. Despite the increase, the pace of reported inflation appears to be slowing and the Fed’s assessment remains that the current inflation spike reflects transitory factors. 

Market Highlights

National Gas Company signed a consolidated supply contract with Methanol Holdings Limited. This ends protracted negotiations between the Government and Proman. Also, National Gas Company and DeNovo Energy announced the signing of the gas sales contract for the commercialisation of the Zandolie Field.

Investment Buzz

A bull market occurs when the market is moving in a positive direction for sustained periods. Optimism is high and investors believe that the uptrend should continue for months.


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.