Issue No. 36

Markets Wrap

Local Equities

For the month ended July 2023, the TT Composite Index advanced 2.59%, driven by gains generated by both Indices. The TT Cross Listed Index returned 7.71% led by the recovery in NCB Financial Group Limited (NCBFG) share price of 27.78%. The All T&T Index gained 1.27% as National Enterprises Limited (NEL), Guardian Holdings Limited (GHL) and ANSA McAL Limited (AMCL) generated positive returns during the month of July of 12.36%, 8.29% and 6.90% respectively. Over the month, 11 stocks increased, 11 declined and 2 held firm. 

During the month, West Indian Tobacco Company Limited (WCO) and National Flour Mills (NFM), both released its half year financials ended June 2023. Despite, WCO generating a 6-month EPS of $0.40, a 33.33% decline from June 2022, the company is expected to pay $0.26 dividend per share on August 29th, 2023. NFM delivered improved results quarter on quarter, producing a 6-month EPS of $13.49 compared to the negative earnings reported in June 2022 period. 

Despite the overall contraction in the local market, the resilience amongst the earnings data released thus far provides some attractive equity valuations for investors. 

International Equities

The US market, denoted by the S&P 500 Index, ended July higher, advancing approximately 3.5% month on month. The growth came as the strength of the US economy persisted despite higher interest rates by the Fed. Growth was generated across all sectors, Energy and Financials delivered the biggest swings this month, climbing 9.2% and 7.0% respectively, while Health Care delivered the lowest month on month growth of 0.6%.

As anticipated, the US Federal Reserve (FED) raised rates 25 bps to 5.50% at its July committee meeting, in its continued fight to taper inflation. This marks a 22 year high for US interest rates and the 11th hike since March 2022. After raising interest rates, the FED noted its optimism for the US economy, citing it is no longer forecasting a recession in 2023.

US inflation, as measured by US CPI YoY Index, declined from 4.0% in May 2023 to 3.0% in June 2023. Additionally, the US added 187,000 jobs in July, less than the estimated 200,000 jobs and the unemployment rate fell to 3.5% in July vs a forecasted 3.6%. With reduced recession risk, resilient market data and stronger earnings outlook for the largest technology-related companies, market consensus has revised upwards the end of year target on the S&P 500 closer to 4700.

Energy prices increased 15.79% month on month, with WTI Crude climbing to $81.80 at July 2023 from $70.64 in June. 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

On the June GORTT yield curve, yield increases were seen across the curve when compared to the prior month, with the short to mid-term end of the curve displaying the greater movements. The 1-year rate increased from 1.37% in May to 1.40% in June whilst the 10-year rate stood at 5.20%.

Month over month, liquidity remained healthy, increasing 11.18% from $6.3 billion in May to $7.0 billion in June. For the year thus far, the market saw GORTT, GORTT agency and corporate issues, as investors continously seek fixed income assets to preserve capital in a volatile investing environment.

We expect additional GORTT/GORTT agency issues for the remainder of the year.

International Fixed Income

US Investment Grade corporate spreads, as measured by the CSI BBB Index, decreased from 1.72%. to 1.65%. The US 10-year Treasury yield increased over the period, from 3.81% on June 30th to 3.97% on July 31st. The US treasury curve remains inverted with a 0.91% spread between the 2-year yield and 10-year yield points at the end of July. The curve is expected to remain inverted within the medium term as the FED’s primary focus is on fighting inflation.

Market Highlights

Rating Agency, S&P, affirmed Trinidad and Tobago’s BBB- credit rating, with a stable outlook. This rating reflects Trinidad and Tobago's favorable external profile, stable democracy and still-solid government financial assets that mitigate the effect of economic cycles on fiscal and external performance. 

Investment Buzz   

Market Capitalization, referred to as Market Cap, is the value of a company that is traded on the stock market. It is calculated by multiplying the total number of outstanding shares by the present share price. 

Fund of the Month

Scotia Global Equity Fund (US$)

-Global Equities

-Medium to High Risk

- Capital Appreciation

Historical Returns (July 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.