Issue No. 30

Markets Wrap

Local Equities

For the month ended January 2023 the TT Composite Index returned -0.66%, driven downwards by the All T&T Index. The All T&T Index returned -1.29% stemming from declines in First Citizens Group Financial Holdings Limited (FCGFH) of -3.75% and Guardian Holdings Limited (GHL) of -3.67%. The TT Cross Listed Index increased by 1.60% over the month due to positive returns of 11.93% in FirstCaribbean International (FCI) and 4.71% in JMMB Group Limited (JMMBGL). Over the month 11 stocks increased, 12 declined and 2 held firm. National Enterprises Limited (NEL), Scotiabank T&T(SBTT) and FCGFH all released annual results during the month. All three companies reported improved EPS with the EPS of SBTT increasing by 13.3% from $3.42 in October 2021 to $3.88 in October 2022.

We continue to anticipate a modest appreciation in prices during 2023 as investor sentiment improves. 

International Equities

For the month January 2023 the S&P 500 Index returned 6.20%. There has been growing evidence that inflation has peaked, and investors grew more confident that a recession is not imminent. Inflation, measured by the consumer price index, fell by 0.1% in December, up a total of 6.5% year on year. The investing environment has transitioned from one overcome with higher inflation and lower earnings growth to one where inflation and interest rates are easing. All sectors, except for Consumer Staples and Utilities, increased over the month. Communications and Technology climbed the most, rising by 15% and 13.7% respectively. US Reports showed that GDP grew by 2.9% in Q42022, ahead of market expectations of 2.6% but below the prior quarter’s return of 3.2%.

The International Monetary Fund (IMF) raised its growth outlook for the first time in a year, forecasting 2.9% growth in 2023 compared to 2.7% in its October report. Other reported economic indicators remain mixed with Retail Sales declining by -1.1% in December, more than the consensus forecast of -0.9%. Consumer sentiment increased by 8.7% from 59.7 to 64.9, the highest reading since April 2022. The U.S economy added 517,000 jobs in January as the unemployment rate fell to 3.4%, its lowest level in 53 years. Meanwhile consumer confidence, an indicator of future developments of household consumption and saving, unexpectedly fell from 109 to 107.1, a two-month low. 

Energy prices were lower month on month with WTI Crude decreasing from $80.26 in December 2022 to $78.87 at the end of January 2023. The outlook for the energy sector remains positive based on the re-opening of China and the EU Embargo on oil which kicks in on February 5th.

In seeking market outperformance, emphasis remains on traditionally defensive sectors, conservatively valued sectors, less economically leveraged sectors and individual companies with strong balance sheets and steady cash flows.



1Yr % ∆

S&P 500









T&T Composite
















US 10Yr





YTD % ∆

Oil (WTI)



Nat Gas (HH)






Fund of the month:

Scotia Caribbean Equity Fund (US$)

-Caribbean equities with a focus on downside appreciation

-Medium to High Risk

Historical Returns (January 2023)







Local Fixed Income

Yields were relatively flat at all points across the curve when compared to the prior month. The 1-year rate stands at 1.06% and the 10-year rate stands at 5.18%.

Month over month liquidity increased by 13.4% from $6.7 billion on December 31st, 2022, to $7.6 billion as January 31st, 2023. So far in 2023 there has been an increase in issuances with multiple Government Agencies and one corporate entity coming to market.  This trend is expected to continue as organizations take advantage of the current low rates. 

International Fixed Income

Investment grade corporate spreads and high yield corporate spreads tightened slightly during the month. US Investment Grade corporate spreads, as measured by the CSI BBB Index, decreased by -8.60% from 1.86% to 1.70% over the month of January. The US 10-year Treasury yield decreased over the period, from 3.87% on December 31st to 3.51% on January 31st.  The 2-year and 10-year yield remains inverted, the spread was at 0.70% at the end of January as the 2-year yield closed the year at 4.21%.  In 2023 the market expects further small-scale rate hikes with investors pricing in a terminal rate in the 4.75%-5.0% range.

Market Highlights

The U.S. has granted a license to Trinidad and Tobago to develop a major gas field located in Venezuelan territorial waters. The country can now do business related to the Dragon gas field with Venezuelan state-run oil company PDVSA.

Investment Buzz   

An option is a contract to buy or sell an underlying asset at a certain price before a future date. There are two main types of options contracts, calls and puts.

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.