Issue No.14

Markets Wrap

Local Equities

For the month ended September 2021, the TT Composite Index returned -0.08%, led downwards by the All T&T Index which decreased by 0.11%. The share prices of National Enterprises Limited (NEL) and Trinidad and Tobago NGL Limited (NGL) weighed on the index, falling by 9.72% and 4.57% respectively. Investors were notably pessimistic towards the Energy industry, despite a steep rise in energy prices and forecasts for increasing domestic production. The Cross Listed Index was flat during September 2021, as gains in JMMB Group Limited (JMMBGL) and NCB Financial Group Limited (NCBFG) were offset by a decline in FirstCaribbean International (FCI). During the month 13 stocks increased, 9 declined and 3 held firm.

The Government has continued it program of a staggered reopening of the economy. Businesses have been allowed to reopen under strict guidelines which many believe will negatively impact their overall performance. To date, approximately 35% of the population has been fully vaccinated with a choice of vaccines still 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 September growing fears of the Delta variant, inflation, Chinese real estate debt defaults, the U.S. debt ceiling and higher energy costs all contributed to an uncertain outlook and high market volatility. Despite these fears the U.S. Economy has been rebounding at a fast pace with a successful vaccine campaign having brought millions of jobs back online and fiscal stimulus supporting above average consumer spending. In terms of monetary policy, a taper of asset purchases is expected to be the first step in the Fed’s removal of accommodative policies. Analysts however believe that even after tapering, the Fed will remain in an accommodative policy stance for some time. 

The S&P 500 Index reported a negative return of -4.76% during the month. The energy sector was the only sector to post a positive return in September, climbing 11% over the one-month period. Energy prices soared as demand increased whilst supply chain and logistical disruptions limited supply. Ten sectors declined with the bottom performers being Materials (-6.2%) and Utilities (-6.3%). Moving forward, growth is likely to slow from its average in the first half of the year as the delta variant persists, supply shortages remain, and pandemic stimulus tapers off. Analysts have revised GDP growth estimates for 2021 from 6.1% to 5.9%, which still represents the strongest annual pace of gains since 1984.




1Yr % ∆

S&P 500









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 0.52% to 0.50%. 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 to combat the impact of COVID closures. Food inflation has risen by more than 50% when compared to the same period last year to 4.9% due to global supply shortages and logistics disruptions stemming from the pandemic.

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$7.7BN, increasing from TT$6.88BN the previous month. 

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, shrank by 2.47% over the month of September. The US 10-year Treasury yield increased sharply over the period, from 1.31% on August 31st to 1.49% on September 30th. A more hawkish’ tone in updates from the Central Bank sparked a rise in yields across the curve with the Fed indicating in its official release that it may soon begin reducing or ‘tapering’ its asset purchases program, and over half of the Fed officials now seeing at least one rate hike likely in 2022.

Market Highlights

The T&T government based its 2022 budget on a price of US$65 per barrel of oil and USD$3.75 per MMBtu for gas. Total revenue for 2022 is projected at $43.33 billion and total expenditure at $52.43 billion.

Investment Buzz

A debt ceiling is a cap on the amount of money the U.S. government can borrow to pay its debts. This limits how much money the federal government may spend to service interest on the debt already in issue, effectively ‘capping’ new borrowings.

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.