Chengetedzai securities depository registers 278 new accounts

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Harare – Chengetedzai Depository Company (CDC) Limited registered 278 new accounts during the month of November 2020 compared to the 517 accounts in October, bringing the cumulative number of accounts opened to 30,533.

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 30 November 2020.

During that period, the Zimbabwe Stock Exchange (ZSE) accumulated value as the market capitalization increased from the previous month by 7.56% to close the month of November 2020 with a market capitalization of ZWL$193.27 billion compared to ZWL$179.69 billion at close of October 2020.

Meanwhile, during the month under review, CDC processed a total of 302 securities deposits compared to 220 in September 2020. This brought the cumulative number of deposits since going live to 88,174.

A total of 4,651 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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