NewGold Exchange-Traded Fund (ETF) has started 2025 with remarkable momentum, extending its bullish run from last year.
The gold-backed ETF recorded a year-to-date (YTD) gain of 2.38% just two trading days ito the year, securing its position as a standout performer on the Ghana Stock Exchange (GSE).
Closing at GHS399.80 per share on its second trading day, NewGold ETF registered a GHS7.90 increase from its previous closing price of GHS391.90. The ETF had opened the year at GHS390.50, underscoring its steady growth trajectory. Its impressive performance places it second in YTD rankings on the GSE, reflecting investor confidence in gold as a safe-haven asset amidst global economic uncertainties.
NewGold ETF has consistently demonstrated robust trading activity. Over the past three months (October 4, 2024 – January 6, 2025), it ranked as the seventh most traded stock on the GSE. Within this period, a total of 507,981 shares were traded, valued at approximately GHS210 million. This translates to an average of 8,063 shares traded per session, with a volume peak of 94,741 shares recorded on December 19, 2024.
The ETF has also begun 2025 as the most actively traded stock on the GSE. On the first weekday of trading (January 6, 2025), 184,194 shares of NewGold ETF were exchanged, representing a market value of GHS12,054,405.58. While this reflected a 74% decline in trading volume compared to the previous trading day, turnover saw an impressive 603% increase, signaling strong investor interest.
A Lone Gainer in a Mixed Market
On January 6, 2025, 17 equities participated in trading on the GSE, but NewGold ETF stood out as the only gainer. It recorded a 2.02% share price appreciation, reinforcing its bullish trajectory. Meanwhile, other notable stocks such as CalBank, MTN Ghana, and Dannex Ayrton Starwin accounted for significant trading volumes but did not see price changes.
The broader GSE market indices reflected a mixed outlook. The benchmark GSE Composite Index (GSE-CI) remained unchanged at 4,890.27 points, marking a modest one-week gain of 0.04% and a four-week gain of 3.94%. Similarly, the GSE Financial Stocks Index (GSE-FSI) closed at 2,383.24 points, reflecting a one-week gain of 0.1% and a four-week gain of 1.36%.
NewGold ETF’s stellar performance can be attributed to the enduring appeal of gold as a store of value. Historically, gold has been a preferred asset during periods of economic uncertainty, serving as a hedge against inflation and currency volatility. As global economic challenges persist, investors are increasingly turning to gold-backed assets like NewGold ETF to preserve their wealth.
The ETF’s performance mirrors trends in the global gold market, where prices have remained strong due to heightened demand from both institutional and retail investors. With Ghana being a major gold-producing country, the ETF offers local investors a convenient way to gain exposure to gold without the complexities of physical ownership.
Investor Confidence in NewGold ETF
NewGold ETF’s consistent performance underscores investor confidence in the fund’s management and underlying asset. The ETF is backed by physical gold, ensuring that its value closely tracks global gold prices. This transparency, coupled with its accessibility on the GSE, has made it a popular choice among Ghanaian investors.
Furthermore, the ETF’s liquidity has been a key driver of its success. The ability to trade significant volumes without substantial price distortions enhances its attractiveness, particularly for institutional investors.
Outlook for 2025
The outlook for NewGold ETF remains positive as it continues to benefit from strong market fundamentals. With gold prices expected to remain strong amidst global economic uncertainties, the ETF is well-positioned to sustain its bullish momentum.
Additionally, the ETF’s early dominance in 2025 trading suggests that it will remain a focal point for both institutional and retail investors. Its ability to outperform the broader market indices further cements its reputation as a reliable investment vehicle on the GSE.
For investors seeking stability and growth in a volatile environment, NewGold ETF offers a compelling proposition—proven resilience, strong market performance, and a hedge against economic uncertainties. As the year progresses, all eyes will be on NewGold ETF to see if it can maintain its bullish trajectory and continue to lead the market.
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