Issue No. 61

During August 2025, the Trinidad and Tobago (T&T) stock market, gauged by the Composite Index (TTCOMP), fell 1.19%. The index of All T&T (TTALL) stocks declined 0.70%, while the Cross-Listed Index (TTCROSS) advanced 0.73%.

The largest detractor was The West Indian Tobacco Company Limited (WCO), which fell 14.47%, followed by One Caribbean Media Limited (OCM) declining 14.00% over the month. The month’s top gainers were ANSA McAL Limited (AMCL) and Point Lisas Industrial Port Development Corporation Limited (PLD) with monthly gains of 17.25% and 7.20% respectively. Trading activity was dominated by Massy Holdings Ltd (MASSY), which was the volume leader, followed by Trinidad and Tobago NGL Limited (NGL).

The outlook for the local economy remains clouded by falling energy production, trade policy uncertainty from United States, geopolitical risks and the potential impact on the supply of foreign exchange. However, recent developments of potential deep-water energy exploration activity and indications from the new Central Bank of Trinidad and Tobago Governor (CBTT) of assessing the interest rate structure and prioritising the leakages in foreign exchange could provide a boost to the outlook over the medium term to longer term. These developments are considered positive signs that opportunities for both retail and institutional investors are available on the local capital markets. 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 continues to be characterized by elevated rates over the 1-to-3-year term segments. Over the month of August 2025, there was a notable increase in the 3-month yield by 37 basis points and a decrease in the 1-year yield by 15 basis points on the Trinidad and Tobago yield curve. Yields have generally increased from a year ago, with the increases being pronounced on the shorter end of the curve.

International financial markets advanced in August 2025, supported by investor optimism over potential United States Federal Reserve (US Fed) rate cuts commencing during their September 2025 meeting. Strong corporate earnings, and resilient economic data lifted market confidence across regions.

During August, a revised report on the United States economic growth revealed stronger growth for the economy during the second quarter, with the updated metric showing a 3.3% annualised increase in Gross Domestic Product, up from the 3% initially reported. The US Fed’s closely watch inflation gauge, personal consumption expenditures (PCE) price index showed that core inflation ran at a 2.9% annual rate in July. Despite this rate resting above their target, the US Fed appears to view the weakness in the labour market to warrant a rate cut in September.

Duing the month, United States stocks rallied to fresh record highs as the S&P 500 rose 2.03%, led by the materials and health care sectors, while utility stocks lagged. During the month, market breath improved, with the equal-weighted S&P 500 index rising 2.52%. International Fixed income posted returns that were also positive albeit modest, with United States bonds advancing 1.20% gauged by the Bloomberg United States Aggregate Index. The 10 year United States Treasury Yield dipped to 4.23%, while the 2-Year yield settled at 3.62%.

Within commodities, performance was mixed as gold rose 4.80% while West Texas Intermediate crude declined 7.58% and natural gas fell 3.51% fell. 

Fund of the Month

Scotia Global Equity Fund (USD)

- Capital Appreciation

- Medium to High Risk