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LOCAL FIXED INCOME REVIEWLOCAL MARKET REVIEW

FEATURES

WEEKLY MARKET ROUND-UP

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 Equity Market Review

ISSUE NO. 46 11TH FEBRUARY, 2019

Market volume amounted to 1,346,159 units valued at over $22.24 million. NCB Financial Group Limited (NCBFG) was the volume leader with 842,510 units (62.59% of market activity) followed by CLICO Investment Fund (CIF) with 126,840 units (9.42% of market activity) and Sagicor Financial Corporation Limited (SFC) with 108,829 units (8.08% of market activity). Overall trading activity on the Trinidad and Tobago Composite Index resulted from trading in 23 stocks of which 13 advanced, 3 declined while 7 stocks traded steady. SFC advanced 8.51% or $0.75 to close the week at $9.56. Unilever Caribbean Limited (UCL) followed closely, with an increase of 1.72% or $0.43 to close at $25.43. Trinidad Cement Limited (TCL) experienced the biggest decline last week, down 5.66% to close at $2.50. On the Mutual Fund Market, CLICO Investment Fund (CIF) units traded with a value of $2.51 million, closing the week at unit price of $20.15(↓0.10%). The Calypso Macro Index Fund (CALYP) ended at $14.00 with 2,555 units traded at a value of $76,678.00. Local indices weekly performances: � The Composite Index advanced by 4.64 points (↑0.36%) to close at 1,307.84. (YTD: ↓0.22%) � The All T&T Index advanced by 2.15 points (↑0.13%) to close at 1,705.78. (YTD: ↓0.13%) � The Cross Listed Index advanced by 0.97 points (↑0.80%) to close at 122.95. (YTD:↓0.42%) �The SME Index by 0.00 points (0.00%) to close at 99.50. (YTD:↓0.50%)

The Indices ended the week in positive territories. The Composite Index closed at 1307.84, up 0.36% or 4.64 points. The All Trinidad and Tobago Index rose to 1705.78 while the Cross Listed Index closed at 122.95.

Find New Treasury Bill issues and local bond activity summarized below.

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2 JMMB INVESTMENTSMARKET ROUND-UP

Local Fixed Income Review Bonds There were no bonds traded on the Trinidad and Tobago Stock Exchange Bond Market. Liquidity The Commercial Banks closed last week with an excess reserve of $3.1 billion compared to $2.7 billion last week, up by $0.4 billion.

"Venezuela’s Nicolas Maduro has sought OPEC support against U.S. sanctions imposed on his country’s oil industry, citing their impact on oil prices and potential risks for other members of the producer group. But a source familiar with the matter said the Organization of the Petroleum Exporting Countries, of which Venezuela is a founding member, had declined to make any formal statement. OPEC says it is concerned with oil policy, not politics. More than 40 nations including the United States, European powers and most of Latin America have recognized Maduro’s rival, Juan Guaido, as the country’s rightful head of state, following disputed elections last year. The request was made in a letter sent to OPEC Secretary-General Mohammad Barkindo dated Jan. 29 and seen by Reuters, a day after the United States imposed sanctions on Venezuelan state oil firm PDVSA. “Our country hopes to receive the solidarity and full support of the member countries of OPEC and its ministerial Conference, in the fight we are currently having against the illegal and arbitrary intrusion of the United States in the internal affairs of Venezuela,” Maduro wrote. I seek “your firm support and collaboration to jointly denounce and face this shameless dispossession of ... important assets of one of the members of OPEC”, the letter said. He wrote that OPEC should help to determine potential solutions based on “the impact that this action has on the global energy market, and the risk it represents for the other countries ... of this organization”. The sanctions on Venezuela have boosted global oil prices, which were trading at around $62 a barrel on Monday. The move has disrupted shipments as more than 20 tankers loaded with Venezuelan oil have been anchored off the U.S. Gulf Coast. Still, analysts say there is ample spare capacity in other oil producers such as Saudi Arabia plus strategic reserves in consuming nations to compensate for a loss of Venezuela’s exports. OPEC tends to avoid political disputes involving individual members. Last year, it declined a request from Iran for a discussion of U.S. sanctions against Tehran at a policy-setting meeting. Venezuela was once a top-three OPEC oil producer but production has been in decline for years following the collapse of the country’s economy. Eergy research and consulting firm Rystad sees Venezuelan production plummeting to 680,000 barrels per day (bpd) next year, from 1.34 million bpd at the end of 2018. Venezuela pumped 3 million bpd at the turn of the century.Together with Libya and Iran, Venezuela is exempt from the latest OPEC-led supply cut due to the involuntary decline in production." Source: Reuters

3 MARKET ROUND-UP

Regional Economic OutlookVENEZUELA

Venezuela's Maduro seeks OPEC help against U.S. sanctions

MARKET ROUND-UP4

UK economic growth slowest since 2012

"he UK economy expanded at its slowest annual rate in six years in 2018 after a sharp contraction in December. Growth in the year was 1.4%, down from 1.8% in 2017 and the slowest rate since 2012, the Office for National Statistics (ONS) said. The ONS blamed falls in factory output and car production for the slowdown, among other factors. It follows forecasts of slower growth in 2019 due to Brexit uncertainty and a weaker global economy. According to the ONS, quarterly growth also slowed, falling to 0.2% in the three months to December - down from 0.6% in the three months to September. The pound fell by a third of a cent to below $1.29 following the news. Head of GDP at the ONS Rob Kent-Smith said: "GDP slowed in the last three months of the year with the manufacturing of cars and steel products seeing steep falls and construction also declining. "However, services continued to grow with the health sector, management consultants and IT all doing well." A slowdown was expected. But the economy has hit the brakes harder than economists thought it would. Growth over the quarter was weaker than the 0.3% anticipated. And over the month the numbers look positively worrying. According to the ONS estimates, gross domestic product fell in December by 0.4%. That included a drop in services activity (restaurants and retail etc), which is estimated to have fallen by 0.2% on the month. This is the only time since 2012 that services, construction and production all fell. While that chimes in with the gloomy picture painted by, for example, retailers' company results, it's not by any means a certain sign we are entering a new recession. This is only the first estimate by the ONS; the figures are provisional and are often revised when the second and third, more accurate figures arrive. The ONS said the figures reflected a slowdown across a number of industries, as Brexit-related concerns weighed on business spending decisions. In the final quarter of last year, it found car manufacturing declined at its steepest rate in just under a decade, slipping 4.9%. Construction fell 0.3% while business investment dropped 1.4%.While Britain's dominant services sector continued to expand, growth slowed to 0.4% following a strong performance during the summer. The 1.4% growth figure for 2018 was the lowest since 2012, when the economy also grew by 1.4%. The last time the economy performed worse than this was in 2009, when it contracted by 4.2%. Source: BBC

International Economic Outlook