NAIROBI, March 2 (Xinhua) — The price of Kenya’s gold-backed exchange traded fund (ETF) hit an all-time high of 2,075 shillings (18.2 U.S. dollars) on Wednesday, with investors reaping big as the value of the precious metal continues to rise globally.
The gold is traded at the Nairobi Securities Exchange (NSE) under the Absa New Gold exchange traded fund and the price is derived from real-time value of gold in the world markets.
NSE said in a statement that the gold ETF further recorded an all-time high turnover of 851,858 dollars on a volume of 44,000 units.
Geoffrey Odundo, the chief Executive of NSE, said ETFs allow investors to spread their risk, 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. Gold can be used to hedge against inflation, deflation and currency risk," he said.
Kenya’s NSE started the gold trading in February 2017, making the market the first to do an ETF listing in the region. ■