Issue No. 34

Markets Wrap

Local Equities

For the month ended May 2023 the TT Composite Index returned -4.56%, driven downwards by both Indices. The TT Cross Listed Index returned -10.21% over the month due to declines in all its components. The worst performers were NCB Financial Group Limited (NCBFG) and JMMB Group Limited (JMMBGL) which returned -19.8% and -8% respectively. The All T&T Index also declined, returning -2.92% as Guardian Holdings Limited (GHL), Republic Financial Holdings limited (RFHL) and First Citizens Group Financial Holdings (FCGFH) dragged the Index downwards. Over the month 5 stocks increased, 16 declined and 4 held firm.

We continue to expect a gradual appreciation in prices over the next year as investor sentiment improves and companies beat earnings expectations.

International Equities

For the month May 2023 the S&P 500 Index returned 0.25%. Stocks were mixed as analysts reviewed economic data and news on the debt ceiling.  Technology and Communications led the gains, rising 17.3% and 13.1% respectively. Financials remained the laggard, falling by 7.2% due to the continued concerns surrounding the financial industry. Furthermore, inflation rose by 4.9% year over year in April, down from the previous month’s rate of 5%.

First quarter GDP was revised from 1.1% to 1.3% driven by an increase in personal consumption. U.S.  Retail sales rose by 0.4% month over month in April following a decline in the prior month. The rise in retail sales was driven higher by health, personal care and general merchandise. Consumer sentiment fell by 6.8% from 63.5 in March to 59.2 in May partially due to fears surrounding the financial sector and the debt ceiling. Meanwhile, consumer spending increased by 0.8% in April, beating the expected increase of 0.5%. Additionally, the US unemployment rate declined from 3.5% to 3.4% in April showcasing the continued strength of the labour market. Bloomberg analysts expected the rate to increase to 3.6%.

Energy prices declined with WTI Crude decreasing from $76.78 in April 2023 to $68.09 at the end of May 2023 as investors expected supply to be high given a lack of cuts by the Organization of the Petroleum Exporting countries (OPEC). The re-opening of China’s economy, supply cuts by large oil producers, 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 continues to be on areas of the 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)






Local Fixed Income

Yields increased on the short and medium ends of the curve when compared to the prior month. The 1-year rate increased from 1.27% in April to 1.37% in May whilst the 10-year rate stood at 5.17%. 

According to the Central Statistical Office real GDP grew by 3% during the first three quarters of 2022.Growth was driven by an increase of 4.7% in the non-energy sector which outweighed a decline of 0.7% in the energy sector. The unemployment rate declined to 4.9% in 2022 compared to 5.4% in 2021 as the economy slowly reopened following the removal of restrictions. Month over month liquidity increased from $4.9 billion on April 30th, 2023, to $7.3 billion as May 31st, 2023.

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, increased from 1.81% to 1.88%. The US 10-year Treasury yield increased over the period, from 3.42% on April 30th to 3.64% on May 31st. The 2-year and 10-year yield remained inverted, the spread was at 0.76% at the end of May with the 2-year yield closing the month at 4.40%.  During the month investors were fearful that a lack of a deal on the US debt ceiling negotiations could place the US’s AAA credit rating in jeopardy. 

Market Highlights

The US Senate passed legislations which suspended the US debt ceiling for 2 years. This allows the government to keep borrowing money and pay its bills on time.

Investment Buzz   

Cash equivalents are securities that are meant for short term investing. For example, a Treasury bill or repurchase agreement which can easily be converted to cash is considered a cash equivalent.

Fund of the Month

Scotia Global Equity Fund (US$)

-Equity securities

-Medium-High Risk

-Potential for capital appreciation

Historical Returns (May 2023)







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.