Issue No. 31

Markets Wrap

Local Equities

For the month ended February 2023 the TT Composite Index returned 0.16%, driven upwards by the All T&T Index. The All T&T Index returned 0.89% stemming from increases in Agostini’s Limited (AGL) of 10.98% and National Enterprises Limited (NEL) of 6.85%. The TT Cross Listed Index returned -2.36% over the month due to negative returns of -10.00% in JMMB Group Limited (JMMBGL) and -3.53% in NCB Financial Group Limited (NCBFG). Over the month 10 stocks increased, 11 declined and 4 held firm. Guardian Holdings Limited (GHL) released annual results during the month, reporting an improvement in EPS of 40.6% from $3.37 in December 2021 to $4.74 in December 2022. 

We expect a gradual appreciation in prices during 2023 as investor sentiment improves and companies report improved earnings.

International Equities

For the month February 2023 the S&P 500 Index returned -2.61%. The market pulled back as investors feared the Federal Reserve may push rates higher for longer than previously expected. All sectors, except for Industrials, declined over the month. Communications and Energy were the laggards, falling by 6.8% and 7.4% respectively. Whilst inflation has declined in the past few months some underlying components indicate that improvement has been minimal. This has reinforced the view that the Fed needs to continue increasing rates in order to achieve the target inflation rate. 

The fourth quarter GDP was revised from 2.9% to 2.7% based on a downward revision to consumer spending and imports. Economists reacted to inflation data and economic updates by revising their 2023 forecasts for global GDP growth from 2.1% o 2.4%. Economic indicators were generally strong over the month. U.S.  Retail sales increased in January by 3%, the most in approximately 2 years, after falling 1.1% in the prior month. Consumer sentiment increased by 3.2% from 64.9 January to 67 in February. The unemployment rate declined from 3.5% to 3.4% in January, a five-decade low. Meanwhile consumer confidence fell from 107.1 to 102.9 due to drops in confidence for households aged 35-54.

Energy prices were lower month on month with WTI Crude decreasing from $78.87 in January 2023 to $77.05 at the end of February 2023. The re-opening of China’s economy, increasing jet fuel demand and oil embargos are expected to provide a boost to the energy sector in the short term.

In seeking market outperformance, emphasis is on areas of equity market which have historically shown low earnings volatility throughout economic cycles.



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 and short-term fixed income securities

-Low Risk

Historical Returns (February 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%. 

Real GDP expanded by 6.6% year on year during the second quarter of 2022. Locally, core inflation jumped to 6.7% in December 2022 and food inflation increased to 17.3% from 6.6% and 13.8% respectively in November 2022.Growth in the non-energy sector registered at 10.5% whilst growth in the energy sector declined by 2.5%. Month over month liquidity decreased by 19.7% from $7.6 billion on January 31st, 2023, to $6.1 billion as February 28th, 2023. So far in 2023 there has been an increase in issuances with multiple Government Agencies and a few corporate entities coming to market.  This trend is expected to continue as organizations take advantage of the current low rates. 


International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, increased by 5.9% from 1.70% to 1.80% over the month of February. The US 10-year Treasury yield increased over the period, from 3.51% on January 31st to 3.92% on February 28th.  The 2-year and 10-year yield remains heavily inverted, the spread was at 0.90% at the end of February as the 2-year yield closed the month at 4.82%.  For the remainder of 2023 investors are pricing in three more 25bps hikes for a total of four hikes. Subsequent to sticky inflation and strong economic data the market now expects the policy rate to hit 5.5% by the middle of the year.

Market Highlights

The international Monetary Fund approved Jamaica’s request for US$968 million in Special Drawing Rights (SDRs) under a precautionary 24-month liquidity arrangement and an additional US$764 million under its Resilience and Sustainability Facility.


Investment Buzz   

Defensive assets are those that aim to provide a steady or stable income stream. These assets tend to increase or maintain their value during financial threats such as recessions or bear markets. 

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.