Issue No. 35

Markets Wrap

Local Equities

For the month ended June 2023, the TT Composite Index returned -3.37%, driven by declines generated by both Indices. The TT Cross Listed Index returned -6.59% led by major declines in NCB Financial Group Limited (NCBFG) of -15.63% and GraceKennedy Limited (GKC) of     -11.69%. The All T&T Index also contracted by -2.51% as Unilever Caribbean Limited (UCL), Guardian Holdings Limited (GHL) and West Indian Tobacco Company Limited (WCO) generated negative returns during the month of June of -22%, -16.11% and -6.92% respectively. Over the month, 3 stocks increased, 18 declined and 4 held firm. 

During the month, Scotiabank T&T Limited (SBTT) released its half year results ended April 2023. Despite reporting a lower EPS of $1.95 as at April 2023 from $2.02 in April 2022, SBTT approved a higher Q1 dividend of $0.70 per share (Q1 2022: $0.65).

Despite contractions in the local equity market, we have seen resilience amongst the earnings data released thus far, which is anticipated to translate to some price recovery as investor sentiment improves. 

International Equities

For the month June 2023, the S&P 500 Index generated a positive return of 6.47%. The US stock market delivered optimistic results as US consumer confidence increased, approaching close to its one and a half year high in June 2023. Growth was experienced across all sectors. Industrials and Consumer Discretionary delivered the biggest swings this month, climbing 11.7% and 10.8% respectively, while Consumer Staples delivered the lowest month on month growth of 1.8%. 

In June, the US Federal Reserve (FED) announced a pause in interest-rate hikes, leaving rates at 5% to 5.25%, after more than a year of consecutive rate increases. However, further increases are expected with the FED’s tunnel focus on achieving their 2% target inflation.

The final estimate for Q1 2023 GDP growth was revised up by 0.7% to 2% mainly as a result of upward adjustments to consumer spending and exports. However, US Consumer spending, the primary economic driver slowed sharply in May, suggesting Q2 US GDP may be less robust than previously anticipated.

Energy prices increased with WTI Crude climbing from $68.09 in of May 2023 to $70.64 at the end of June 2023. This increase followed the Organization of the Petroleum Exporting countries (OPEC) announcement on June 4 to extend crude oil production cuts through 2024. The projected fall in global oil inventories is likely to continue to put some upward pressure on crude oil prices within the short to medium term. 

In seeking to outperform the market, the investment strategy   continues to be focused on areas of the equity market which are expected to outperform as momentum builds, keeping in mind asset picks that have shown historically low earnings volatility. 



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 end of the TT yield curve when compared to the prior month, while longer term rates remained relatively flat. 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 (CSO), headline inflation in May 2023 slowed to 5.7% from 6.0% in April 2023. The CSO anticipates a moderation in headline inflation going forward but noted that any adverse weather would affect local crop prices.

Private sector credit grew 6.5% year on year in April 2023, driven by an uptick in consumer loan demand and real estate mortgage lending. Local liquidity levels remained robust with the commercial banks’ excess reserves at the Central Bank moving from TT$4.6 billion in April 2023 to TT$6.3 billion in May 2023.

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, decreased from 1.88% to 1.72%. The US 10-year Treasury yield increased over the period, from 3.64% on May 31st to 3.81% on June 30th. The US treasury curve remains inverted with a 1.06% spread between the 2-year yield and 10-year yield points at the end of June. The curve is expected to remain inverted within the medium term as the FED’s primary focus is on fighting inflation.


Market Highlights

The National Investment Fund Holding Company Limited is issuing a new Series D National Investment Fund (NIF) bond priced at 7.10% for 17 years. This issue will be used to refinance the Series A of the NIF bonds maturing August 2023.

Investment Buzz   

Dollar-cost averaging is a strategy to manage price risk when buying stocks, exchange-traded funds (ETFs) or mutual funds. For example, you buy fewer shares when prices are high and more when prices are low in order to reduce the overall cost paid for the asset.

Fund of the Month

Scotia Money Market Fund (US$)

-Short term Fixed Income Instruments

-Low Risk

-Liquidity and Capital Preservation

Historical Returns (June 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.