Share dematerialisation at Chengetedzai soars after resumption of trade on ZSE

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  • 59.16% growth in securities deposits
  • 134 accounts opened from 54 in July
  • ZSE market capitalisation decreased by 23%

Chengetadzai Depository Company (CDC) registered a 59.16% growth in security deposits in the month of August 2020 compared to the prior month on the back of the resumption of trade on the Zimbabwe Stock Exchange (ZSE) in August 2020, in which the second best turnover for the year was recorded.

CDC processed 191 securities deposits from 120 processed in the previous month bringing the cumulative number of securities deposits processed since going live to 87,031.

According to an operating update, accounts opened in the month of August 2020 soared to 134 compared to the previous month when 54 CSD accounts were opened, representing a 148% increase.

 Therefore, the cumulative number of accounts opened on the CSD as at 31 August 2020 was 29,322 with local investors contributing 94% while the remaining 6% is accounted for by foreigners.

Chengetedzai added that the ZSE Equities Market Capitalization shed value from ZWL$228.58 billion as at close of trading before market suspension to ZWL$175.68 as at 31 August 2020, a 23% contraction.

The market value of securities registered on the CSD closed at ZWL$79.25 billion which accounted for 45.11% of the ZSE Equities market Capitalization as at 31 August2020.

The number of securities listed on the ZSE remained unchanged during the month under review as there were no new listings.

The company also said the average Dematerialisation penetration ratio (Demat Ratio) across all counters remained at 45% as at 31 August 2020.

In the month of August 2020, the CSD received and processed a total of 4,039 ZSE trades, bringing a total number of trades processed in 2020 to close at is 27,834.

CDC also said trading on the ZSE Equities market increased significantly, The ZSE Equities market recorded its second highest monthly Turnover in 2020 of ZWL$1.027 billion. The corresponding figure in June 2020 when the market last traded was ZWL$1.9 billion.”

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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