Issue No.20

Markets Wrap

Local Equities

For the month ended March 2022, the TT Composite Index returned -2.16%, as both the All T&T Index and the Cross listed Index registered negative returns. The All T&T Index decreased by -0.80% due to price decreases in First Citizens Group (FCGFH) and Guardian Holdings Limited (GHL). The TT Cross Listed Index fell -5.94% the month as the negative return of -12.19% in NCB Financial Group Limited (NCBFG) weighted down the Index. During the period Angostura Holdings Limited (AHL) and Trinidad Cement Limited (TCL) both released their year end financial results. AHL’s EPS improved by 10% from $0.71 to $0.77 in 2021 whilst TCL’s EPS moved from a loss of $0.065 to a profit of $0.0379. Over the month 10 stocks increased, 13 declined and 2 held firm.

The government has now removed most of its COVID restrictions; “Safezones” are no longer in operation, large gatherings are no longer limited and all sporting activities can resume fully. The broader economy is expected to benefit greatly from the resumption of all pre-pandemic activities and the removal of these operating restrictions. We continue to encourage persons to vaccinate as further advances in this area should bode positively for a continued increase in economic activity and by extension the markets.

International Equities

In March Russia’s invasion of Ukraine grew more intense, the Federal Reserve adjusted the benchmark interest rate in an attempt to cool down the economy and inflation accelerated. Markets are pricing in an additional 225 basis points of rate hikes by the Federal Reserve for the rest of 2022. Despite these factors the S&P 500 Index reported a positive return of 3.58% over the month.  The Energy and Utilities sectors led the market with returns of 10.4% and 10.6% respectively. The Consumer Discretionary and Financials sectors were the worst performers, returning -4.1% and -0.6% respectively. Investors have realized that companies are still profitable with some companies dealing with record inflation by passing on rising costs to their customers. Meanwhile the conflict between Russia and Ukraine continued to push energy prices upward with WTI Crude advancing from $95.72 in February to $100.28 at the end of March.

Unfortunately, the Ukraine crisis does not appear anywhere near to being resolved. Sanctions on Russia over the war in Ukraine are likely to further disrupt commodity flows. These sanctions are being placed to damage Russia’s economy and penalize President Putin for his aggressive actions. Uncertainty regarding the outlook for Russia’s energy exports and Ukraine’s grain exports is weighing heavily on the outlook for the global energy and agricultural sectors.

The Fed is expected to be aggressive going forward as it attempts to tackle inflation, despite any negative impact on economic growth and the stock market in the short term. Our overall outlook for economic growth remains positive in the long term as economic fundamentals remain strong and COVID restrictions are now fully repealed in most states. Investment in companies with strong cash flows and resilient earnings, and diversification across sectors and regions can lend to investor outperformance. 



1Yr % ∆

S&P 500









T&T Composite
















US 10Yr





YTD % ∆

Oil (WTI)



Nat Gas (HH)






Fund of the Month

Scotia U.S. Equity Fund

- Equity securities of U.S. companies

- Diversification across ETFs

- Medium to High Risk

Historical Returns (March 2022)







Local Fixed Income

Short term TTD rates again increased marginally over the month while longer term rates held fairly stable. The 1-year rate increased month over month from 0.40% to 0.61%, while the 10 year moved from 4.99% to 4.98%. This is the highest the 1 year rate has been in 17 months.

For the start of the year both the corporate and sovereign bond markets have remained dormant with no new issues yet coming to market. Year on year liquidity fell from $10.5 billion in February 2021 to $4.8 billion in February 2022.

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, increased slightly from 1.56% to 1.57% over the month of March. The US 10-year Treasury yield increased over the period, from 1.82% on February 28th to 2.34% on March 31st. During the past month the spread between the 2 year yield and the 10 year yield has been closing and the 3 year yield is now higher than the 5 year yield. An inverted yield curve is usually a reliable early warning signal for recessions. Furthermore, inflation remains elevated with the PCE price index (reflects changes in the prices of goods and services purchased by consumers in the United States) rising 6.4% in February, up from last year and in line with expectations.

Market Highlights

The U.S announced new sanctions that target two of Russia’s biggest banks and President Vladimir Putin’s adult daughters. Additionally, the UK imposed sanctions on Russia’s largest bank and committed to ending all imports of Russian coal and oil by the end of 2022.

Investment Buzz

A company sometimes pays out a portion of their income to shareholders, this is called a dividend. Depending on the company, dividends may be a one-time payment or can be paid at regular intervals such as monthly, quarterly, semi-annually or annually. Dividends can form an important part of a shareholder’s total return on investment. 


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.