Dematerialisation spikes before suspension of ZSE trading

  • 259 new accounts opened
  • Local investors continue dominating CSD accounts
  • ZSE Equity Market Capitalisation increased by 49.77%

Harare -Chengetedzai Depository Company registered a spike in securities deposits in the month of June compared to the previous month as a result of less strict lockdown measures and strong ZSE rally which created gains for investors who sold off.

The company processed 559 securities deposits, a 501 percentage growth from 93 processed in May.

Local investors continue to dominate the Central Securities Depository (CSD) accounts that were opened, accounting for 94% of CSD accounts while the remaining 6% is accounted for by foreigners.

In an operating update the company said ZSE Equities Market capitalisation increased by 49.77% to close the month of June 2020 at ZWL$228.58 billion compared to ZWL$152.62  billion at the end of May.

Chengetedzai also added that CSD market value securities grew significantly to ZWL$106.56 billion from ZWL$71.39 billion as at May 31, representing a 49.26% growth.

CDC however highlighted that ZSE had no new securities listings and the number of CSD on-boarded securities remained unchanged. Also, the listing of the first Exchange Traded Fund (ETF) which was expected in April 2020 was delayed due to market slowdown as a result of the coronavirus pandemic.

The average Dematerialisation penetration ratio across all counters remained at 45% as at 30 June 2020.

Dematerialised securities accounted for 46.67% of the ZSE Equities market capitalisation for the period under review.

CDC also said trading on the ZSE Equities market increased significantly, “The ZSE Equities market Turnover recorded another substantial increase from ZWL$569.25 million achieved in May 2020 to ZWL$1,894.30 million for June 2020.”

In the month of June 2020, the CSD received and processed a total of 6,404 ZSE trades, bringing a total number of trades processed in 2020  to close at 23 795.

Chengetedzai Depository Company Limited is a limited company incorporated in terms of the laws of Zimbabwe and was formed to establish and operate a central securities depository for the Zimbabwe securities industry.

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