Home Business NewGold ETF Suffers Sharp Decline Amid Stock Market Rally

NewGold ETF Suffers Sharp Decline Amid Stock Market Rally

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Ghana’s gold-backed exchange-traded fund recorded a steep 9.8% drop on Wednesday, May 14, 2025, closing at GH¢385.12 despite broad market gains.

The GH¢41.89 plunge in NewGold ETF (GLD) stood in stark contrast to the Ghana Stock Exchange’s overall performance, where the Composite Index rose 2.3% to 6,607.59 points.

The divergence highlights shifting investor sentiment as traditional equities outperform commodity-linked securities. While blue-chip stocks like Ecobank Ghana and MTN Ghana posted gains, the gold ETF’s slump reflects weakening demand for safe-haven assets amid improving market conditions. Trading volume plummeted to 1.28 million shares from the previous day’s 12.2 million, suggesting cautious participation despite the index rally.

Analysts note the decline follows global gold price trends, which have faced pressure from stabilizing economic indicators. The ETF’s underperformance raises questions about the near-term outlook for commodity-backed securities in Ghana’s market, even as overall capitalization grows to GH¢142.49 billion. Market watchers will monitor whether this represents a temporary correction or a sustained rotation away from precious metal investments.

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