Absa Gold ETF, has hit a new high at Kshs 1,980 on July 27, 2020.
The Gold ETF was first listed at the Nairobi Securities Exchange in March 2017 where South African firm NewGold Issuer (RF) Limited issued 400,000 Gold Bullion Debentures at a price of Kshs 1,205 per share. Each NewGold security is equivalent to approximately 1/100th of an ounce of gold which is held in a secure depository on behalf of investors and is backed by physical gold.
In this case, the value of the NewGold ETF tracks the price of gold and the price of the ETF based on the real-time cash market values of the gold price and the real-time price of the Kenya Shilling. The price movements of the ETF are determined by the price movement of gold.
Globally, the price of gold has continued to rise mainly driven by global uncertainties triggered by COVID-19 pandemic, weak dollar, low-interest rates and numerous stimulus programmes.
On Monday’s early trading session, spot gold touched a new all-time topping $1,944.80 per ounce for the first time. With the rising geopolitical tensions between China and the US, an increasing number of new COVID cases globally, fears of new lockdowns for businesses and travel restrictions continue to worry investors.
Demand for the New Gold ETF began to rise rapidly when Kenya confirmed its first virus case in March this year. The Gold ETF was also the best performing investment at the NSE in 2019.
NewGold Issuer (RF) Limited, a wholly-owned subsidiary of NewGold Owner Trust, was primarily listed on ETF sector of the Johannesburg Stock Exchange in 2004. NewGold debentures secondary listings include; Botswana Stock Exchange, Nigeria Stock Exchange, Stock Exchange of Mauritius, Namibia Stock Exchange and Ghana Stock Exchange.
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