ISSUE NO. 9

All three Indices ended the week in positive territory. GHL was the major advance, up 5.16% or $0.81 to close the week at $16.51, followed by NGL with an increase of 4.17% or $1.00 to end at $25.00, to its 52 week high..

FEATURES

Local Market Review Local Fixed Income Review

4TH DECEMBER, 2017

WEEKLY MARKET ROUND-UP 

The gradual adjustment of the US monetary policy stance led to a narrowing of the TT-US interest rates differentials; margins may tighten further if the Fed takes further rate action before the end of 2017.

All information contained herein is obtained by JMMB® Investment Research from sources believed by it to be accurate and

reliable. All opinions and estimates constitute the Analyst’s judgment as of the date of the report. However, neither its accuracy

and completeness NOR THE OPINIONS BASED THEREON ARE GUARANTEED. As such NO WARRANTY, EXPRESS OR

IMPLIED, AS TO THE ACCURACY, TIMELINESS OR COMPLETENESS OF THIS REPORT IS GIVEN OR MADE BY JMMB®

IN ANY FORM WHATSOEVER. JMMBITT is a member of the JMMB Group and a registered broker dealer with TTSEC.

Local Market ReviewActivity on the First Tier Market climbed 8.87% last week, with a volume of 1.35 million shares crossing the

floor compared to 1.24 million shares the prior week. The total share value traded increased by 6.59% to

$24.22 million versus the previous week’s value of $22.72 million. JMMB Group Limited (JMMBGL) topped

as last week's volume leader with 543,381 units traded, controlling 40.39% of the market. Ansa McAl

Limited (AMCL) followed closely with 202,028 shares (15.02%) being traded. In third place, Trinidad and

Tobago NGL Limited (NGL) captured 14.96% of market activity or 201,220 shares.

Overall market activity resulted from the trading activity of 24 stocks of which 11 advanced, 4 declined and 9 traded steady. Guardian Holdings Limited (GHL) and NGL enjoyed price surges of 5.16% and 4.17% to

close at $16.51 and $25.00 respectively, due to optimistic investor sentiment. LJ Williams Limited ‘B’

(LJWB) recorded last week's major decline, falling 10.26% or $0.08 to $0.70, followed by a 5.05% or $0.11

decline, experienced by JMMBGL, to $2.07. All local Indices reflected positive gains last week.

Local indices weekly performance:

� The Composite index advanced by 6.68 points (↑0.52%) to close at 1,282.26. (YTD Return : ↑6.01%).

� The All T&T Index advanced by 8.65 points (↑0.50%) to close at 1,750.94. (YTD Return:↓4.54%).

� The Cross Listed Index advanced by 0.64 points (↑0.59%) to close at 109.67 (YTD Return:↑40.29%).

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2 JMMB INVESTMENTSMARKET ROUND-UP

Local Fixed Income ReviewBased on a review for the November monetary report, CBTT concluded the

following:

� Improved global economic conditions are yet to be fully reflected in the

performance of the Trinidad and Tobago economy.

� Strengthening commodity prices during the first half of 2017 contributed to

moderate improvements in the current account balance and fiscal revenues

and inflation remained contained.

� The gradual adjustment of the US monetary policy stance led to a

narrowing of the TT-US interest rates differentials; margins may tighten further

if the Fed takes further rate action before the end of 2017.

The government of the Commonwealth of the Bahamas has issued a US-dollar, fixed rate, 10 year, global

bond. The interest rate on the instrument is fixed at 6% per annum with semi-annual interest/coupon

payments.The bond pays its first coupon on May, 21st, 2018 with the next 6 months after. The bond is rated

“BB+” with a stable outlook by S&P (Standard & Poor’s) which puts it about four “notches”/levels above

Jamaica and one notch below investment grade. Moody’s however still rates the country at investment grade

(Baa3/stable).

Analysis of The Issuer/Sovereign-The Bahamas is a small open economy highly susceptible to external

shocks and highly dependent on tourism and financial services. Economic activity has slowed generally,

over the last decade, due to the 2008/09 global recession, the Sep-11 bombings in the US, corruption and

more recently, weather related shocks. The Bahamas is heavily dependent on tourism which accounts for

well over 50% of total gross domestic product (GDP), estimated at US$9.1 billion in 2016, and directly and

indirectly employs over 50% of the labour force. The financial and agriculture sectors represent the other

major segments of the economy and account for well over 20% of total GDP.

In our opinion the Bahamas 2028 is cheap to the curve and offers value for those investors willing to take

exposure. We acknowledge that the Bahamas is having some fiscal challenges but we balance our concerns

with the fact that the government has put in measures in an attempt to arrest the deficit and reverse the

trajectory of the debt. We also highlight that while S&P has downgraded the sovereign to non-investment

grade, at this time Moody’s still has the Bahamas at investment grade. The yields are also comparatively

attractive when viewed against the Caribbean and Central American Curve. Consequently we recommend the

Bahamas 2028 as a buy at this time based on its yield, rating and outlook.

Source: JMMBIR

3 MARKET ROUND-UP

Regional Economic Review

2028 Global BondBAHAMAS

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4 MARKET ROUND-UP

As the fight against the global supply surplus

continues, the decision by OPEC and its non-OPEC

partners, to extend the current output agreement to

the end of 2018, was in line with market expectations.

The surprising re-involvement of Nigeria and Libya,

two OPEC members originally exempted from supply

cuts (although has minimal impact on overall physical

balances) created little price growth optimism in the

market.

The nine month extension of the OPEC/non-OPEC

agreement to end-2018 is expected to curb global

supply. This, in addition to the growing oil demand,

provides fundamental support to current oil prices.

WTI prices stood at US $58.36 per barrel while Brent

closed at a high of US$63.47 per barrel at the end of

the week.

ENERGY UPDATE

Oil cuts to continue until end of 2018

US ECONOMY

Third- quarter economic growth accelerates

All information contained herein is obtained by JMMB® Investment Research from sources believed by it to be accurate and

reliable. All opinions and estimates constitute the Analyst’s judgment as of the date of the report. However, neither its accuracy

and completeness NOR THE OPINIONS BASED THEREON ARE GUARANTEED. As such NO WARRANTY, EXPRESS OR

IMPLIED, AS TO THE ACCURACY, TIMELINESS OR COMPLETENESS OF THIS REPORT IS GIVEN OR MADE BY JMMB®

IN ANY FORM WHATSOEVER. JMMBITT is a member of the JMMB Group and a registered broker dealer with TTSEC.

The US third quarter (Q3) Gross domestic product

(GDP) growth expanded at a 3.3% annual rate last

quarter, boosted by a rebound in government

investment and robust business spending on

equipment. This is the fastest pace recorded since

Q3 2014, as the economy experiences growth of

3% or more for two consecutive quarters. Initially,

the economy reported a growth of 3.0% in the

July-September period.

However, there is some speculation that the

current growth pace exaggerates the economy's

health as inventories accounted for nearly a

quarter of the economy's GDP growth. Omitting

inventories, the economy grew at a 2.5% rate.

International Economic Review