Issue No.24

Markets Wrap

Local Equities

For the month ended July 2022, the TT Composite Index returned 0.68%, led upwards by the All T&T Index. The All T&T Index increased by 1.41% with Angostura Holdings Limited (AHL) and Ansa McAl Limited (AMCL) registering the highest returns of 17.86% and 5.25% respectively. The TT Cross Listed Index fell by -1.65% over the month as the negative returns of -0.91% in Grace Kennedy Limited (GKC) and -4.19% in National Commercial Bank Financial Group (NCBFG) weighed on the Index. During the period First Citizens Group Financial Holdings Limited (FCGFH) and GraceKennedy Limited (GKC) released their quarterly results. FCGFH’s EPS grew by 6.2% from $1.93 to $2.05 in the nine-month period ended June 2022 and GKC’s EPS increased by 2.6% from $3.63 to $3.73 in the six-month period ended June 2022. Over the month 9 stocks increased, 14 declined and 2 held firm.

The T&T Government recently  removed the mask mandate for all public spaces. Major public events have since began and the economy is now considered fully reopended. 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 July the S&P 500 Index climbed 9.11% based on better than anticipated company earnings. All sectors increased with Industrials and Technology increasing by 11.6% and 11.7% respectively. Consumer sentiment improved 3% from 50 in June to 51.5 in July as over 70% of companies reported better than expected earnings results and the Federal Reserve Chairman took on a more dovish tone. The Federal Reserve raised interest rates by 0.75% in July for the second month in a row. Investors now predict that the policy rate will end the year above 3.00% following 3 additional rate increases. It is estimated that Q2 GDP was -0.9% and GDP for the full year 2022 is expected to be 2.0%.  According to the National Bureau of Economic Research the United States is now in a recession given its two consecutive quarters of negative growth. Volatility has eased in the last month, the prior month’s events such as the Russia-Ukraine war, rate increases by the Fed, higher than expected inflation and China’s zero tolerance policy caused unusually high volatility.

Global inflation has surged beyond 11% this year, weighing on purchasing power and investor sentiment.
However, commodity prices declined for the second month in a row with WTI Crude declining from $105.76 in June to $98.62 at the end of July. According to OPEC’s oil market outlook global demand growth is expected to exceed supply for the next year which will likely lead to an increase in energy prices in upcoming months. 

In seeking market outperformance, the investment focus towards 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 US Equity Fund (US$)

- Equity securities of U.S. companies

- Diversification across ETFs

- Medium to High Risk

Historical Returns (July 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 4.99% to 5.00%.

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 increased slightly from $2.8 billion in June to $2.9 billion in July.

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, decreased by -4.73% from 2.13% to 2.03% over the month of July. The US 10-year Treasury yield decreased over the period, from 3.01% on June 30th to 2.65% on July 31st as economic data showed signs of a slowing economy. The difference between the 10-year treasury yield and the 2-year treasury yield inverted as the 2-year yield moved to 2.88%. Year over year the headline inflation rate increased by 6.6%, up from a gain of 6.3% in May. The Fed continues to target a 2% average inflation rate over time.

Market Highlights

S&P Global Ratings upgraded the outlook for Trinidad and Tobago from negative to stable. The stable outlook reflects the expectation that higher prices of key exports will offset the impact of lower than expected energy production, returning the economy to growth.

Investment Buzz

Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. It serves as a measure of corporate profitability and is commonly used to value stocks. 

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.