Issue No.23

Markets Wrap

Local Equities

For the month ended June 2022, the TT Composite Index returned -2.20%, as both the All T&T Index and the Cross listed Index continued to register negative returns. The All T&T Index decreased by -1.25% with Unilever (UCL) and First Citizens Group Financial Holdings (FCGFH) registering the lowest returns. The TT Cross Listed Index fell by -5.12% over the month as the negative returns of -6.12% in Jamaica Money Market Brokers (JMMBGL) and -5.99% in National Commercial Bank Financial Group (NCBFG) weighed on the Index. During the period L.J Williams Limited (LJWB) released their annual results. LJWB’s EPS fell by 4.8% from $0.31 to $0.27 in 2022. Over the month 9 stocks increased, 15 declined and 1 held firm.

The T&T Government recently  removed the COVID-19 test requirement for persons entering the country. It was also announced that the Government intends to remove the mask mandate from mid-July. Shortly COVID-19 related restrictions will no longer be in place, making way for a large boost in economic activity. We continue to encourage persons to talk all health precautions as further advances in this area should bode positively for a continued increase in economic activity and by extension the markets.

International Equities

During June the S&P 500 Index tumbled -8.39% over the month as fears of a recession permeated the market.All sectors declined with Energy and Materials leading the way lower, falling by -18.6% and -15.1% respectively. It is forecasted that Q2 GDP fell by more than 2%, this follows a Q1 decline of 1.6% with two quarters of consecutive GDP decline being the traditional threshold for declaring an economic recession. Furthermore, consumer confidence dropped 4.4% from 103.2 to 98.7 in June, a larger decline than expected. Global inflation has continued to surge, mainly due to supply side shocks resulting from lingering pandemic effects and the Eastern European war. The Federal Reserve raised interest rates by 0.75% in June and has warned that a hike of at least 0.50% can be expected in July policy meeting. Investors now predict that the policy rate will end the year above 3.0%. The Fed chairman has stated that the central bank will continue to raise interest rates until there is clear evidence that inflation is on the decline, even at the expense of economic growth. As a result, economists have again reduced U.S. growth expectations for 2022, down to 2.7% from the 3.8% estimated at the beginning of the year.  

Commodity prices cooled for the first time in months with WTI Crude declining from $114.67 in May to $105.76 at the end of June. OPEC members have agreed to raise production by 648,000 barrels a day in July and August which is equivalent to less than 1% of daily global demand. The recent decline in energy prices should have a positive impact on inflation metrics going forward.

In seeking market outperformance, the investment focus has shifted towards stocks and sectors which are less leveraged to the business cycle, that can absorb the risk of higher raw material and labour costs and have balance sheets which are minimally exposed to a further rise in borrowing costs. 



1Yr % ∆

S&P 500









T&T Composite
















US 10Yr





YTD % ∆

Oil (WTI)



Nat Gas (HH)






Fund of the month:

Scotia Money Market Fund (US$)

- High quality money market instruments

- Capital preservation

- Low Risk

Historical Returns (June 2022)







Local Fixed Income

Short term and medium-term TTD rates were higher over the month while long term rates were flat. The 1-year rate increased from 0.92% to 0.98%, while the 10-year held relatively steady moving from 4.98% to 4.99%.

Since the start of the year both the TTD corporate and sovereign bond markets have remained relatively dormant with just two corporate issues coming to market. Month over month liquidity however decreased markedly from $4.6 billion in May to $2.8 billion in June.

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, increased by 17.12% from 1.82% to 2.13% over the month of June. The growing expectations for a higher rates has stymied demand for bonds with yields across the curve higher in June. The US 10-year Treasury yield increased over the period, from 2.84% on May 31st to 3.01% on June 30th, after reaching a 1 year high of 3.47% on June 14th. Year over year the headline inflation rate increased by 6.3% for the second consecutive month, down from a gain of 6.6% in March. The Fed targets a 2% average inflation rate over time and has signalled its intention to aggressively use monetary policy action to achieve this.

Market Highlights

First Citizens Group Financial Holdings announced an Additional Public Offering (APO) which entails the offer for sale of 10,869,565 ordinary shares at a price of $50 per share. The APO subscription period closes on July 22nd, 2022.

Investment Buzz

A recession is a period of sustained economic downturn. Recessions are usually identified by a fall in Gross Domestic Product (GDP) in two successive quarters. It is often accompanied by an increase in unemployment and a decline in spending.

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.