Gold exchange-traded funds at the Nairobi bourse recorded an all-time high turnover of KShs 91.7 million on a volume of 44,000 units and closed at Ksh.2075 Wednesday.
According to Nairobi Stock Exchange (NSE) market report, the overall turnover in the market activities as of March 2 was KSh 792 million from the previous sessions KShs 202 million with 11.57 per cent contributed by the Absa New Gold Exchange Traded Fund.
Gold-backed ETFs are passive investment instruments that are based on price movements and investments in physical gold.
The NewGold issuer (RF) Ltd, a subsidiary of South Africa’s ABSA, became the first ETF issued in East Africa in 2017.
Kenya became the 7th market within the Absa Africa Group to launch the product.
The security rose by 10.37 per cent to Kshs 2075 from Ksh 1880 registered in the previous sessions.
“ETFs allow investors to spread their risks, diversify their portfolio as well as have ease of purchase and exit. 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,” Mr Geoffrey Odundo, NSE Chief Executive Officer.