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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. 29 6TH AUGUST, 2018

This week, the local Indices all ended in positive territories. The Composite Index advanced by 14.45 pointsor 1.18%, as both the All T&T Index and Cross Listed Index climbed 0.56% and 2.71% respectively. FirstTier Market activity amounted to 1.15 million units valued at over $6.6 million. Trinidad Cement Limited(TCL) was this week’s volume leader with 715,102 units changing hands, capturing 62.12% of marketactivity. GraceKenndey Limited (GKC) followed closely with 144,800 units or 12.58% while Sagicor FinancialCorporation (SFC) ranked third, with 104,591 units holding 9.09% of market activity. Overall trading activity on the Trinidad and Tobago Composite Index resulted from trading activity from23 stocks of which 10 advanced, 4 declined while 9 stocks traded steady. Last week, FCI advanced 4.94%or $0.40 to close the week at $8.50, followed by AMCL with an increase of 3.64% or $2.00 to end at $57.00.NCBFG was in third place with an increase of 2.73% to end at $5.65. JMMB Group Limited (JMMBGL) experienced a major decline last week, down 2.17% or $0.04 to close at $1.80. Secondly, NGL fell 0.17% or$0.05 to end at $29.69, followed by Massy Holdings Limited (MASSY) down by 0.11 per cent or $0.05 toclose at $46.90, its 52 week low. Local indices weekly performances: � The Composite Index advanced by 14.45 points (↑1.18%) to close at 1,220.05. (YTD: ↓3.66%) � The All T&T Index advanced by 10.52 points (↑0.61%) to close at 1,709.30. (YTD: ↓1.13%) � The Cross Listed Index advanced by 0.30 points (↑0.31%) to close at 98.16. (YTD:↓9.34%)

Local Indices all closed in negative territories last week. TheTrinidad and Tobago Composite Index declined 0.84% or 10.33points to close at 1,221.82. The All T&T Index declined 0.16% or2.73 points to 1,719.37 mainly due to decreases in UCL and GHL.

Find New Treasury Bill issues and local bond activitysummarized below.

MARKET ROUND-UP2

Local Economic ReviewbpTT's Angelin sails into T&T

bpTT’s Angelin platform, the energy company’s 15th offshore platform, has arrived in T&T. "The platform was fabricated in Altamira, Mexico and the topside and jacket set sail from there on June 30.Over the next few weeks they will be installed off the south east coast of Trinidad. The Angelin facility willbe located 60 kilometres off the south east coast of Trinidad in water-depth of approximately 65 metres. Angelin was originally discovered by the El Diablo well in 1995 and appraised by La Novia in 2006. The development will include four wells and will have a production capacity of approximately 600 millionstandard cubic feet a day (mmscfd). Gas from Angelin will flow to the Serrette platform via a new 21kilometre pipeline. First gas is expected in the first quarter of 2019. bpTT Regional President Claire Fitzpatrick said: “Angelin is part of bpTT’s long-term plan to develop itsresources in the Columbus Basin and the development underscores bpTT’s commitment to Trinidad andTobago. The safe arrival of the jacket and topsides is an important milestone and we are now focusing onthe next stages of the project as we progress towards first gas in 2019.” T&T nationals were involved in the construction of Angelin and bpTT has also sought to share lessonslearned during construction of the platform. As part of this effort, the company facilitated a visit to theAltamira fabrication yard by representatives from the Government and private sector." Source: Trinidad and Tobago Guardian

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Local Fixed Income Review Bonds The following two bonds traded on the Trinidad and Tobago StockExchange Bond Trading Market: - GORTT 5.95% coupon bond expiring April 2023 with a trade value of$6,614,646.92 and a closing price of $110.76 - GORTT 7.75% coupon bond expiring April 2024 with a trade value of$626,542,517.56 and a closing price of $121.24. Liquidity Commercial Banks closed last week with an excess reserve of $5.2billion compared to $2.3 billion last week, up by $2.9 billion.

"Liquidity remains high, in the Jamaican financial market with investors driving the average to 1.74percent on Bank of Jamaica (BOJ) 30 days certificate of deposit earlier this week, as demand of $24billion chased $8.5 billion on offer. In mid -July, more than $50 billion in government bonds expired with interest, but government took upless than $15 billion in new bonds, as it paid back the bonds in cash, using a large draw down fromfunds held at Bank of Jamaica by Public sector entities, amounting to $50 billion. At the end of June, Public sector entities deposit at BOJ was $97 billion but fell to $46 billion after thepayout of the bond. The payout added to the high level of liquidity in the market that helped driveinterest rates down to 2 percent at the mid-July Treasury bill Auction. On Tuesday, July 31, applications were received by BOJ for $8.5 billion BOJ 3 percent Certificate ofdeposit through a competitive price auction. The issue attracted 61 bids amounting to $24 billion, only41 bids were successful, with the average yield of 1.74 percent. The lowest submitted rate was1.39999 percent for $40 million and the highest was 6 percent for $40 million. The highest rate for fullallocation was 1.83 percent in the amount of $100 million. The average rate is below BOJ’s overnight rate of 2 percent and the last 91 days Treasury bill rate of1.95963 percent." Source: IC Insider

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Regional Economic OutlookJAMAICA

Investors push interest rate to 1.74%

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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 Review"All eyes on China amid a move to shore up yuan and as trade war tit-for-tat continues, North Koreasanctions being debated and markets set to open higher. China in Spotlight China’s markets will be closely watched Monday after fresh salvos were fired in the trade war and as asupport measure for the yuan announced on Friday takes effect. The People’s Bank of China said it willimpose a reserve requirement of 20 percent on some trading of foreign-exchange forward contracts. Thatwill effectively make it more expensive to short the yuan, which rallied on the news. Officials released a listof $60 billion in U.S. goods that Beijing intends to hit with tariffs, in retaliation for the Trump administration’splan to impose duties on $200 billion in Chinese imports. Meanwhile, U.S. President Donald Trump saidthat the U.S. now has the upper hand in the tariff battle and that playing hardball on trade is “my thing.” China trade and Japan growth are this week's Asia highlights. The initial impact of U.S. tariffs on $34 billion of Chinese goods may show up in July's trade report, which isexpected to record a $39.05 billion surplus. Japan's second-quarter GDP may rise an annualized 1.4percent, according to consensus, rebounding from the prior period's 0.6 percent contraction and indicatinga move toward reflation. The Bank of Japan releases a summary of opinions from its July 30-31 meeting,which may garner a lot of interest as bond traders worldwide strive to work out what the Japanese centralbank is aiming to achieve. Japanese and Hong Kong GDP, China data on money and credit, and the RBA'squarterly statement on monetary policy rounds out the week in Asia before U.S. CPI." Source: Bloomberg