Issue No. 37

Markets Wrap

Local Equities

For the month ended August 2023, the TT Composite Index declined by 2.20%, driven by the negative growth generated from the TT Cross Listed Index and All T&T Index of 2.62% and 2.09% respectively. Contractions in the share price of Trinidad and Tobago NGL Limited (NGL) of 18.32% and Massy Holdings Limited (MASSY) of 6.73% drove the All T&T index downwards, while a 5.80% drop in NCB Financial Group Limited’s (NCBFG) share price was the main contributor to the downswing in the TT Cross Listed Index. In August, market activity resulted from 24 securities trading of which 5 stocks increased, 18 declined and 1 held firm.

During the month, ANSA McAL Limited (AMCL) released its half year financial results ended June 2023. The Group posted improved results during the period, generating an EPS of $1.13, up from $0.16 in HY 2022. The company is expected to pay $0.30 dividend per share on September 8th, 2023.

We maintain that despite the overall contraction in the local market, the resilience amongst some released company earnings data provides some attractive equity valuations for investors.

International Equities

Buoyant consumer spending and a surge in business activities helped the US economy to maintain its momentum in the second quarter of 2023. The continued resilience of the US economy showed fewer signs of a recession as the Q2 GDP grew 2.1%, according to the government’s second estimate for the period, following its 2.0% growth in Q1 2023. 

Chairman of the US Federal Reserve, Jerome Powell, noted that the US central bank is prepared to continue increasing interest rates even further, if appropriate, until inflation tapers toward the Fed’s 2% target. This raises the risk of borrowing costs remaining higher or possibly climbing within the short term. He further acknowledged that even though inflation has fallen off from its peak levels, it remains too high. US inflation, as measured by US CPI Index, increased marginally in July to 3.2%, compared to 3.0% in June 2023 as a result of higher energy and food prices.

The S&P 500 Index posted a negative return of -1.77% in August as investors reacted to an increase in rates. Contractions were recorded across all sectors with Utilities and Consumer Staples sectors delivering the biggest declines this month of -6.2% and -5.2% respectively.

Crude oil prices increased 2.24% month on month, climbing to US $83.63 per barrel in August from US $81.80 per barrel in July. According on the International Energy Agency (IEA) August Report, the improved macroeconomic sentiment coupled with OPEC supply cuts and all-time high world oil demand has contributed to the steady oil price increases. 

Within the short to medium term, we maintain that the projected fall in global oil inventories is likely to continue to put some upward pressure on crude oil prices. 




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Oil (WTI)



Nat Gas (HH)






Local Fixed Income

Local short-term yields on the July GORTT yield curve rose month on month. Notable movements were recorded on the 3-month rate, which moved from 0.82% in June 2023 to 0.86% in July 2023 while the 1-year rate climbed from 1.40% in June 2023 to 1.52% in July 2023. The 10-year TT yield narrowed, slipping from 5.20% to 5.17%. Local headline inflation, measured on a year-on-year basis, stood at 5.8% in June 2023.

Net Official reserves slid 1.5% from $6.6 billion in June, the equivalent of 8.3 months import cover, to $6.5 billion in July, the equivalent of 8.1 months import cover. Liquidity also contracted, dropping 21.9% from $7.0 billion in June to $5.5 billion in July.

Demand for local fixed income securities, GORTT, GORTT agencies or corporate issues, remain strong as investors continuously seek fixed income assets to preserve capital in a volatile investing environment. The corporate bond market is expected to remain relatively inactive with only few issues for the year thus far.

International Fixed Income

At the beginning of the month, the credit rating agency, Fitch, cut the US government’s debt to AA+, highlighting its concerns for the lack of governance and the ballooning fiscal deficit. Despite this, US Investment Grade corporate spreads, as measured by the CSI BBB Index, remained stable at 1.65% month on month. At the end of August, the US 10-year Treasury yield rose to 4.09% on August 31st from 3.97% on July 31st, on the heels of better-than-expected economic data. The US spread between the 2-year yield and 10-year yield points narrowed at the end of August, now at a 0.76% spread vs a 0.91% spread in July. The curve is expected to remain inverted within the medium term as the FED’s primary focus is fighting inflation.

Market Highlights

Rating Agency, Fitch, downgraded the United States from AAA to AA+, citing fiscal deterioration over the next three years and repeated down-to-the-wire debt ceiling negotiations that may threaten the Government’s ability to pay its bills. Fitch first highlighted the possibility of a rating downgrade in May 2023 due to the rising debt ceiling .

Investment Buzz   

Compounding refers to the increasing value of an asset due to the interest earned on both principal and accumulated interest. For example, $1,000 in an account that pays 1% annual interest, will earn $10 in interest in Year 1 and in Year 2 1% will be earned on $1,010 (the principal plus the interest). 

Fund of the Month

Scotia Money Market Fund (US$)

-Short Term Fixed Income Instruments

-Low Risk

- Capital Preservation, Liquidity

Historical Returns (August 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.