Issue No.15

Markets Wrap

Local Equities

For the month ended October 2021, the TT Composite Index returned -0.5%, led downwards by the Cross Listed Index which decreased by -2.40%. The share prices of FirstCaribbean International (FCI) and NCB Financial Group (NCBFG) weighed on the index, falling by -5.54% and -2.30% respectively. The All T&T Index was up slightly during October 2021, as gains in Trinidad and Tobago NGL (NGL) and One Caribbean Media Limited (OCM) were offset by declines in Guardian Holdings Limited (GHL) and Plipdeco (PLD). Trinidad Cement Limited (TCL) released their nine-month results during the month. The company’s EPS improved from 5.4 cents in 2020 to 7.4 cents in 2021. During the month 15 stocks increased, 9 declined and 1 held firm. 

The Government has reopened additional businesses and school children in forms 4-6 are now allowed to attend school regardless of vaccination status. In early November the Prime Minister announced his intention to end the State of Emergency at the end of the month. This move has been welcomed by business owners who have long requested the end of the curfew. To date over 600,000 citizens have 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

The Fed announced a beginning of its taper process starting at the end of November. According to the statement net asset purchases will reduce at a pace of US$15 billion per month. This is viewed as the first step prior to interest rate hikes. However, it is expected that the Fed will remain in an accommodative policy stance for some time as numerous risks remain. During the month the U.S. economy continued its rebound despite inflation concerns and higher energy costs. Positive sentiment in the market increased after Pfizer Inc. said its Covid-19 pill reduced hospitalizations and deaths in high risk patients by 89%.

The S&P 500 Index reported a positive return of 6.91% in October as stocks benefited from better than expected third quarter earnings.  Nine sectors advanced and two declined. The Energy sector was the top performer climbing by 11.2% over the month as demand increased whilst supply chain and logistical disruptions limited supply.  Communications and Consumer Staples lagged the other sectors declining -1.6% and -0.1% respectively. COVID-19 fears have somewhat subsided with over 58% of the U.S population now fully vaccinated. Details from President Biden’s vaccine mandate states that companies with over 100 employees must guarantee that employees who aren’t vaccinated against COVID-19 produce a negative test at least weekly and wear a mask at the workplace.  We maintain that 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. 



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Oil (WTI)



Nat Gas (HH)






Local Fixed Income

Short term TTD rates declined marginally over the month. The 1-year rate slipped downwards from 0.50% to 0.45%. The rate has a one year low of 0.22% in December 2020 and a high of 2.08% in September 2020. International commodity prices, higher shipping costs, transportation delays and adverse weather conditions all led to a marked increase in food prices locally.

Throughout the first ten months of the year demand for plain vanilla GORTT securities remained strong. The corporate bond market remained relatively dormant with two new issues coming to market in the last month. System liquidity stood at TT$8BN, increasing from TT$6.8BN the previous month. 

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, grew by 3.25% over the month of October. The US 10-year Treasury yield increased over the period, from 1.49% on September 30th to 1.55% on October 31st. Investors sold U.S. debt expecting that surging energy prices would fuel inflation and increase pressure on the Fed. The Fed continues to reiterate that inflation is transitory however inflation rates are already above 4% and consumers expect inflation to remain at 4% over the next three years.

Market Highlights

The World Health Organization (WHO) granted Emergency Use Listing (EUL) approval for Covaxin developed by India-based Bharat Biotech. This is the eighth vaccine approved by WHO.

Investment Buzz

The Federal Funds Rate is the interest charged by banks with excess reserves at a Federal Reserve district bank to banks needing overnight loans to meet reserve requirements. The Federal Open Market Committee sets a federal funds rate eight times a year based on prevailing economic conditions.

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.