Chengetedzai securities depository registers 517 new accounts

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As at end of October 2020, 55.02% of the ZSE equities market capitalisation was accounted for by securities registered on the CSD and had a total of ZWL$99.87 billion in value

Harare – Chengetedzai Depository Company (CDC) Limited registered 517 accounts during the month of October 2020 compared to 436 accounts in September, bringing the cumulative number of accounts opened to 30,275.

In a recently released trading update, the company said that local investors continue to dominate on accounts opened accounting for 94% of the total accounts as at 31 October 2020.

During that period, the Zimbabwe Stock Exchange (ZSE) shed value as the market capitalization decreased from the previous month by 12.98%. The month recorded a turnover which was below that of September 2020 resulting in a 79% decrease in the total traded value.

The ZSE Equities Market shed value by 12.98% to close the month of October 2020 with a market capitalization of ZWL$179.69 billion compared to ZWL$206.50 billion at close of September 2020.

“As at end of October 2020, 55.02% of the equities market capitalisation was accounted for by securities registered on the CSD and had a total of ZWL$99.87 billion in value,” CSD said.

Meanwhile, during the month under review, CDC processed a total of 220 securities deposits compared to 621 in September 2020. This brought the cumulative number of deposits since going live to 87,872.

A total of 4,543 trades were processed during the month under review.

Chengetedzai Depository Company Limited is a limited liability 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.

A “Depository” is a provider of facility for holding and/or transacting securities in, book entry form. Physical securities can be converted in to book entry form i.e. electronic form by way of immobilization or dematerialization (so that they exist only as electronic records). Chengetedzai has chosen the dematerialization route. A depository functions somewhat similar to a commercial bank. To avail of the services offered by a depository, the investor has to open a dematerialised account with a registered DP.

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