Issue No. 60

During July 2025, the Trinidad and Tobago (T&T) stock market, gauged by the Composite Index (TTCOMP), fell 2.00%. The index of All T&T (TTALL) stocks declined 3.25%, while the Cross-Listed Index (TTCROSS) advanced 1.91%.

The largest detractor was National Enterprises Limited (NEL), which fell 16.60%, followed by ANSA McAL Limited (AMCL) declining 14.75% over the month. The month’s top gainers were Medcorp Limited (MED) and Endeavour Holdings Limited (EHL) with monthly gains of 10.42% and 6.39% respectively. Trading activity on the exchange saw 30 securities being traded during the month, of which 8 stocks advanced, 19 declined and 3 held firm. Trading activity was dominated by Massy Holdings Ltd (MASSY), which was the volume leader, followed by Trinidad and Tobago NGL Limited (NGL).

Locally, the economic outlook remains muted, complicated by subdued energy production, trade policy uncertainty from United States and foreign exchange challenges which continue to weigh on business sentiment. However, welcomed signs of corporate activity on the local capital market via a recent fully-subscribed Initial Public Offering (IPO) and Merger and Acquisition (M&A) activity could prove to boost investor appetite and activity. We view these developments as positive signs that opportunities for both retail and institutional investors are present on the local stock market. Our team’s approach to local equity investing is guided by robust fundamental research with a long-term view of select local equities.

The local fixed income market continued to be characterized by elevated rates over the 1-to-3-year term segments. Over the month of July 2025, the Trinidad and Tobago yield curve was relatively stable, with increases pronounced along the 1-to-2-year time-horizons. Yields have generally increased from a year ago, with the increases being pronounced on the shorter end of the curve.

International Equity markets advanced in July, supported by improving investor sentiment driven by a resilient quarterly earnings season and strong United States (U.S.) Gross Domestic Product (GDP) growth. In the U.S., the S&P 500 climbed 2.2%, lifted by strength in Information Technology, Utilities, and Industrials sectors. Fixed income markets declined as rising bond yields pressured prices. Over the month, U.S. bonds slipped 0.3% gauged by the Bloomberg US Aggregate Bond Index. In commodities, West Texas Intermediate crude oil surged 6.4%, while natural gas dropped 10%, extending its year-to-date decline to over 14%. Emerging market equities posted solid gains, with the MSCI Emerging Markets Index up 1.7%, primarily due to improving economic data.

Here are some of July’s most notable events:

Making global trade great again, one deal at a time. It was a busy month for global trade as the U.S. finalized two major agreements that could reshape transatlantic and Indo-Pacific economic relations. On July 22, the U.S. and Japan reached a joint trade deal. Japan will invest $550 billion into the U.S. to rebuild and expand core American industries, with the U.S. also securing increased market access for American producers in sectors such as energy, manufacturing, and agriculture. Following this announcement, on July 27, the U.S. and European Union (EU) signed a comprehensive trade and energy agreement under which the EU will invest $600 billion into the U.S. over the course of President Trump’s term. Additionally, the EU committed to purchasing $750 billion worth of U.S. energy exports through 2028.

U.S. fiscal bill passes, boosting growth outlook and deficit concerns. Markets closely watched as the “Big Beautiful Bill”—a sweeping fiscal package—was signed into law on July 4. The bill includes significant new spending on infrastructure, clean energy, border security, and defense, along with broad tax relief for middle- and working-class Americans. The legislation also features new social programs and additional funding for military modernization and missile defense. While analysts noted the bill’s potential to boost near-term GDP growth and support key sectors, concerns over the long-term fiscal impact led to upward pressure on U.S. Treasury yields and renewed debate over the country’s debt trajectory.

Fund of the Month

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