Issue No.21

Markets Wrap

Local Equities

For the month ended April 2022, the TT Composite Index returned -0.95%, 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 MASSY Holdings Limited (MASSY) and Ansa Mc Al Limited (AMCL). The TT Cross Listed Index fell -1.41% over the month as the negative returns of -6.33% in First Caribbean International (FCI) and -1.48% in Grace Kennedy limited (GKC) weighed on the Index. During the period Guardian Media Limited (GML) and GraceKennedy Limited (GKC) both released their year end financial results. GKC’s EPS improved by 31.7% from $6.28 to $8.27 in 2021 whilst GML’s EPS moved down from $0.12 to $0.10. Over the month 12 stocks increased, 11 declined and 2 held firm.

Business operations throughout the country have boosted since the removal of major COVID restrictions.  The International Monetary Fund expects real GDP in T&T to grow by 5.5% in 2022 based on the anticipated recovery in domestic economic activity, as well as increased energy production and higher energy prices. 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

During April the S&P 500 Index plummeted by -10.79% over the month. All sectors declined apart from the Consumer Staples sector which rose by 3%. The Communications and Technology sectors were the worst performers, returning -14% and -12.2% respectively. Several factors drove this severe market pull back. The Russia-Ukraine war remains unresolved, and the U.S. continues to implement economic sanctions against Russia. There are now growing fears that Moldova’s breakaway region may be drawn into war and Russia has halted gas deliveries to Poland and Bulgaria.  Investors were also concerned that lockdowns in China will lead to a global economic slowdown and prolonged supply chain disruptions. The Chicago Board Options Exchange volatility Index (VIX) climbed by over 70% in April as market volatility skyrocketed. Volatility is expected to continue over the short term whilst investors determine the impact of the above.

The conflict between Russia and Ukraine and reduced oil supply from Iran has pushed energy prices upward with WTI Crude advancing from $100.28 in March to $104.69 at the end of April. The Federal Reserve remains focused on bringing inflation down, and has investors now bracing for a rate hike of 50bps, the largest since 2000. The Fed also announced that from June it will begin quantitative tightening, allowing over $40 billion of mortgage-backed securities and Treasuries to roll off its balance sheet. Though we are in a stage of correction in the markets our overall outlook for positive economic growth remains intact as economic fundamentals remain strong and COVID restrictions are mostly fully repealed. There has been some concern surrounding the sustainability of earnings growth, however investment in companies with strong cash flows and resilient earnings, and diversification across sectors and regions can lend to investor out performance.



1Yr % ∆

S&P 500









T&T Composite
















US 10Yr





YTD % ∆

Oil (WTI)



Nat Gas (HH)






Fund of the month:

Scotia Fixed Income Fund

- Fixed Income securities

- Income and modest capital gains

- Low to Medium Risk

Historical Returns (April 2022)







Local Fixed Income

Short term and medium-term TTD rates increased marginally over the month while longer term rates held stable. The 1-year rate increased month over month from 0.61% to 0.71%, while the 5-year moved from 3.78% to 3.87%. This marks a new high for the 1-year rate in the past 12 months.

Since the start of the year both the corporate and sovereign bond markets have remained relatively dormant with just two corporate issue coming to market. Year on year liquidity fell from $8.1 billion in April 2021 to $3.9 billion in April 2022.

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, increased from 1.57% to a one year high of 1.79% over the month of April. The US 10-year Treasury yield increased over the period, from 2.34% on March 31st to 2.93% on April 30th.  Concerns around rising inflation, its impact on economic growth, and rate hike expectations have led to a sharp sell off in bonds year to date, with the Bloomberg Investment Grade Corporate Bond Index reporting its worst 4-month performance in over 40 years. Central bank officials have reiterated expectations for a faster drawdown of policy accommodation via increases in the target rate and a reduction of the balance sheet which is expected to continue to place upward pressure on yields, and downward pressure on bond prices.

Market Highlights

China enforced a “zero tolerance” policy, implementing strict lockdowns in its two biggest cities Shanghai and Beijing. These lockdowns have negatively impacted economic activity and have contributed to a decline in major equity markets. 

Investment Buzz

Monetary policy is the macroeconomic policy laid out by a nation’s central bank. It involves the management of money supply and interest rate to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.

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.