Issue No. 27

Markets Wrap

Local Equities

For the month ended October 2022, the TT Composite Index returned -2.06%, led downwards by both indices. The All T&T Index decreased by -2.46% with Republic Financial Holdings Limited (RFHL) and Angostura Holdings Limited (AGL) returning -5.01% and -4.44% respectively. The TT Cross Listed Index fell by -0.66% over the month as the negative returns of -10.31% in JMMB Group Limited (JMMBGL) and -4.57% in Grace Kennedy Company (GKC) weighed on the Index. Over the month 9 stocks increased, 14 declined and 2 held firm. Trinidad Cement Limited (TCL) and West Indian Tobacco Company Limited (WCO) both released quarterly results. TCL’s EPS improved from 7.4 cents to 31.3 cents in the nine-month period ended September 2022 whilst WCO’s EPS declined from 33 cents to 22 cents in the three month period ended September 2022.

International Equities

During September the S&P 500 Index returned 7.99%, its first positive month since July. The index is down -18.76% for the year-to-date period ended October 31st as high inflation persists and the Fed hikes rates aggressively. Markets rebounded on better that expected quarterly earnings for companies and hopes that the Fed might begin to slow the pace of interest rate increases. All sectors increased over the month, Energy and Industrials were the largest contributors registering growth of 22.7% and 12.9% respectively. 

Third quarter GDP rose 2.6% on an annualized basis, following a -0.6% decline in Q2. Retails sales were flat in September, following a 0.4% increase in the previous month. The unemployment rate fell from 3.7% in August to 3.5% in September. Consumer confidence fell by -5.17% from 107.8 in September to 102.5 in October. The Federal Reserve has maintained a firm policy to rise interest rates, hiking the rate five consecutive times. Without meaningful change in the inflation outlook it continues to be difficult to project an improvement in the economic outlook. Inflation is expected to rise 0.6% in October and 7.9% year on year. Additionally, strict COVID lockdowns in China are leading to economic slowdown and prolonged supply chain disruptions globally.

Energy prices climbed with WTI Crude increasing from $79.49 in September to $86.53 at the end of October. Tensions remain between Saudi Arabia and the United States following OPEC’s decision to cut production by 2 million barrels a day. In October the US government released 165 million barrels from the Strategic Petroleum Reserve, leaving 405 million barrels for emergency measures.

In seeking market outperformance, the emphasis is on cash flow reliability at an affordable price. The investment focus also remains towards stocks and sectors which are less cyclically sensitive 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 Fixed Income Fund  (TT$)

-Fixed Income Investments 

-Low-Medium Risk

Historical Returns (October 2022)







Local Fixed Income

Yields were lower on the shorter and longer end of the curve when compared to the prior month. The 1-year rate decreased from 1.11% to 1.04%, while the 10-year moved from 5.12% to 5.10%.

Month over month liquidity was relatively flat, increasing by 3.6% from $5.5 billion in September to $5.7 billion in October. 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. However companies are slowly reentering the market and we expect additional corporate issues in the next six months.

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, decreased by -3.57% from 2.24% to 2.16% over the month of October. The US 10-year Treasury yield increased over the period, from 3.83% on September 30th to 4.05% on October 31st. The 2 and 10-year yield remains inverted, the spread was at 0.44% as the 2-year yield closed the month at 4.49%. Investors are hopeful that the Fed will taper the pace of policy adjustments to 50bps in December followed by 25bps in February.

Market Highlights

The Minister of Finance announced that T&T’s deficit for the 2022 fiscal year ended September 30, 2022, was revised downwards to 0.2% of Gross Domestic Product. Revenue was supported by the increases in the prices of petrochemical commodities. 

Investment Buzz

A capital gain or loss is the difference between the cost of an investment and the price at which it is sold. It helps determine the rate of 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.