Capital Markets

Economic growth is expected to gather speed in 2018 and 2019, and the Trinidad and Tobago Stock Exchange could benefit through higher share prices and more players becoming involved with the exchange. Even if T&T’s road to economic recovery is long, companies with a healthy cash flow have the option to return a higher percentage of their earnings to shareholders. Increasing dividend pay-out ratios would defend the yields earned by investors in a difficult economic environment. New tax measures may offset incremental economic growth in the near term, however, and affect the earnings of the country’s listed companies. In FY 2018 a change was implemented to the tax regime that subjects companies earning over TT$1m ($148,300) per year to a marginal tax rate of 30%, up from 25%. This increase could deflate the impact of companies on the Composite Index by a few percentage points. This chapter includes an interview with Hadyn Gittens, CEO, Trinidad and Tobago Securities and Exchange Commission; and a viewpoint by Gregory N Hill, Managing Director, ANSA Merchant Bank.