Lagos, Nigeria - The Nigerian Stock Exchange (NSE) has listed 400,000 NewGold Exchange Traded Fund (ETF) shares of the South Africa-based Absa capital, the corporate and investment banking division of Absa Bank Limited. The listing on Monday was the first of its kind  in Nigeria and West Africa.

“There are now three African countries - South Africa, Botswana and Nigeria - where NewGold, South Africa’s largest ETF and the third largest gold ETF in the world is listed. As at 14 December 2011, NewGold’s assets under management were US$2.2 billion,” Absa Capital Chief Executive Officer Temisan Ofong told stock brokers and other investors at the NSE.

'The inclusion of the NewGold ETF...on the NSE allows both individual and institutional investors direct access to an efficient and cost effective means to invest in gold through a listed security. It is an effective investment portfolio, (and) represented an excellent opportunities for pension fund administrator’s to invest in,” Ofong added.

The shares opened at 2.544 Naira, and closed at 2.542 Naira.

An ETF is an investment vehicle traded on the stock exchange, much like shares. It gives investors a straightforward and inexpensive way to obtain a broad exposure to  a given index, sector, country or commodity, compared to the purchase of several individual company shares.

Speaking earlier, the Chief Executive Officer of the NSE, Mr. Oscar Onyema, described the listing as a milestone in the history of the 50-year-old exchange.

“Today marks a milestone in the Exchange’s commitment to the rebirth and growth of the Nigerian capital market. The launch of Exchange Traded Funds (ETF) is one of many steps we have outlined as part of our plan to bring to fruition our new vision, which is to become the gateway to African markets,' he said.

Pana 20/12/2011