Nigerian Stock Exchange(NSE) yesterday unveiled the New Gold Exchange Traded Fund (ETF) for investors just as a South African firm, ABSA Capital in synergy with Vetiva Capital Management Limited has concluded arrangement to float the gold-backed ETF, on the Exchange.
The gold-backed ETF called NewGold, according to both companies, will give investors on the NSE the opportunity to invest, own and trade in gold when the fund is listed.
Associate Principal, Investment, ABSA Capital, Mrs. Batsile Ngomane, speaking at a training programme on ETFs organised by the NSE and ABSA in Lagos, said that Nigerian investors would enjoy the enormous opportunities presented by the soon-to-be listed product.
She said investors in the fund would indirectly own gold bars in form of debentures, with assurances on safety of their funds.
According to her, each NewGold security, which is also listed on the Johannesburg Stock Exchange(JSE) was equivalent to approximately 1/100 ounces of gold bullion, held in a secured depository on behalf of investors.
“Each security is backed by physical gold and the value of a NewGold ETF security will appreciate or depreciate in accordance with the fluctuations in the price of gold bullion.”
Meanwhile, equity transactions on the Exchange closed on a downturn, as major blue chip companies recorded price depreciation, causing market capitalisation to drop marginally by N1billion.
With 49 companies recording price depreciation compared to 22 that constributed to the gainers chart, the All Share Index dropped 2.25points, from 20,257.47 recorded on Friday to 20,255.22 while market capitalisation fell by N1billion or 0.1 per cent from N6,412trillion to N6,411trillion.