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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 andreliable. All opinions and estimates constitute the Analyst’s judgment as of the date of the report. However, neither its accuracyand completeness NOR THE OPINIONS BASED THEREON ARE GUARANTEED. As such NO WARRANTY, EXPRESS ORIMPLIED, AS TO THE ACCURACY, TIMELINESS OR COMPLETENESS OF THIS REPORT IS GIVEN OR MADE BY JMMB® INANY FORM WHATSOEVER. JMMBITT is a member of the JMMB Group and a registered broker dealer with TTSEC.

Local Equity Market Review

ISSUE NO. 36 22ND OCTOBER, 2018

Market activity on the Trinidad and Tobago Composite Index generated market volume of 1,436,698 unitsvalued at over $47.45 million. CLICO Investment Fund (CIF) was the volume leader with 350,631 units(24.41% of market activity) followed by Guardian Holdings Limited (GHL) with 185,236 units (12.89% ofmarket activity) and ScotiaBank Trinidad and Tobago Limited (SBTT) with 180,683 units (12.58% of marketactivity). Overall trading activity on the Trinidad and Tobago Composite Index resulted from trading in 24 stocks ofwhich 7 advanced, 14 declined while 3 stocks traded steady. NCB Financial Group (NCBFG) was the majoradvancing stock last week up 7.14 per cent or $0.41 to close the week at $6.15, followed by National FlourMills (NFM) with an increase of 3.03 per cent or $0.05 to end at $1.70. GraceKennedy Limited (GKC) wasthe major declining stock last week, with a decrease of 7.02 per cent or $0.21 to close at $2.78. On the TTD Mutual Fund Market 350,631 CLICO Investment Fund (CIF) units traded with a value of$6,941,858.43. CIF’s closing price last week was at $20.07, an increase of 2.87 per cent or $0.56. Local indices weekly performances: � The Composite Index advanced by 3.77 points (↑0.31%) to close at 1,233.15. (YTD: ↓3.65%) � The All T&T Index declined by 2.32 points (↓0.14%) to close at 1,700.08 (YTD: ↓2.05%) � The Cross Listed Index advanced by 1.37 points (↑1.35%) to close at 103.06. (YTD:↓7.39%)

Last week, the local indies ended the week in mixedterritories.The Composite Index increased by 0.31 per centor 3.77 points to close at 1,233.15, while the All Trinidadand Tobago Index fell by 0.14 per cent or 2.32 points to endat 1,700.08.

Find New Treasury Bill issues and local bond activitysummarized below.

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Local Fixed Income Review Bonds o There were no bonds traded on the Trinidad and Tobago StockExchange Government Bond Trading Market last week. Liquidity o Commercial Banks closed last week with an excess reserve of $1.7billion compared to $2.5 billion the prior week, down by $0.8 billion.

'"A senior economist with the International Monetary Fund (IMF) is confident that if the Barbados EconomicRecovery and Transformation (BERT) Plan is implemented within the time frame, it would move the countryforward. Dr. Kevin Greenidge, who has been seconded by the IMF to serve as a Senior Technical Adviserto the Barbados Government, said the country had made extraordinary strides already, and noted that theprogramme was endorsed by the IMF after an initial engagement of less than three months. “That is extraordinary and it goes to the strength of our programme and our commitment. It is verycoherent, and a programme that hangs together; every part of the programme relies on the next part. If onepart fails, the whole programme will be unraveled. So, that is why as Barbadians we need to be committedand work this right through, we can’t stop now,” he said on Tuesday as he gave an update on the BERTprogramme. Dr. Greenidge said he was pleased the team was able to design a programme that allowed forthe preservation of the exchange rate. He acknowledged that the team would have liked to receive morethan the US$290 million approved by the IMF, but was satisfied with the quota received. “We got 220 per cent of our quota. We did not get 100 per cent, we got twice [the percentage] and a bit. Inthe scheme of things; 100 per cent of quota is normal, so we got way above normal. We are a smallcountry; 220 per cent must still equate to [just under] US$300 million… In terms of the quota, we gotexceptional access and you only get exceptional access if your programme demonstrates exceptionalcommitment and effort,” he said. Dr. Greenidge stated that Barbados had successfully concluded the domestic component of the debtrestructuring, and explained that it was well executed, in that approximately 99.6 per cent of the creditorsvoted in the affirmative. Source: Caribbean 360

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Regional Economic OutlookBARBADOS

Senior IMF Economist Says Barbados’ Economic Recovery Plan Can Work

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All information contained herein is obtained by JMMB® Investment Research from sources believed by it to be accurate andreliable. All opinions and estimates constitute the Analyst’s judgment as of the date of the report. However, neither its accuracyand completeness NOR THE OPINIONS BASED THEREON ARE GUARANTEED. As such NO WARRANTY, EXPRESS ORIMPLIED, 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.

International Economic ReviewWORLD ECONOMY

"Last year, China and the European Union accounted for 53 percent of the American merchandise tradedeficit. In the first eight months of this year, their U.S. business continued to flourish and the combinedChinese and European surpluses came in at two-thirds of the U.S. trade gap. The U.S. deficits will worsenin the forthcoming holiday season as retailers step up overseas purchases to stock up for the most activeselling months of the year. Looking further ahead, the Chinese and the European trade surpluses with the U.S. will be kept on anupward trend by widening economic growth differentials. Yes, America's strong fiscal and monetary policymix will continue to drive demand and output. The current credit conditions are still very easy, and theexpected interest rate increases have some way to go before they reach the point of a neutral policy stance.In the meantime, economic activity will be supported by the lagged impact of past credit easing. The U.S. growth outlook is in sharp contrast with the worrying economic and political developments inGermany, France, Italy and Spain — the four countries that account for nearly three-quarters of the EUeconomy. Germany's growth for this year was revised down last week to 1.8 percent from an earlier 2.2percent forecast by German business group, the Chambers of Industry and Commerce (DIHK). Germany is also working hard to push Italy into a recession. The German media are having a field dayabout Berlin's apparent determination to force the Italians to toe the line of a German fiscal model. Sadly,Italy won't need much pushing as the economy is already on the verge of a major downturn." Source: CNBC