Absa Bank
[Photo/ Courtesy]

The Absa New Gold Exchange Traded Fund (ETF) has recorded an all-time high turnover of Ksh91.7 million on a volume of 44,000 units.

The overall turnover of Wednesday’s market activities is Ksh792 Million and the ETF have contributed to this by 11.57 percent. The security rose by 10.37 percent to Ksh2075, up from Ksh1880 registered in the previous session.

NewGold Issuer (RF) Ltd, a subsidiary of South Africa’s Absa Bank, received approval in February 2017, to issue and list on the NSE. It was the first-ever ETF listing in the region.

The ETFs are significant and highly successful products of financial innovation that are found in more developed financial markets.

“ETFs allow investors to spread their risk, diversify their portfolio as well as have ease of purchase and exit. In addition, ETFs have continuous pricing and liquidity throughout the trading day and are traded on a stock exchange just like shares. Globally, gold has emerged as one of the most reliable safe havens of wealth, remaining largely unchanged in the long run despite the short-term market volatilities. Gold can be used to hedge against inflation, deflation and currency risk,” said Mr Geoffrey Odundo, the Chief Executive of NSE.

The NSE continues to support the growth of the ETF market through our dedicated Business Development and Public E*******n program to see more investors participate in the market.

Read: Absa Bank, AGF Unveil Ksh1.25 Billion Fund to Unlock Credit for SMEs

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