CHENGETEDZAI Securities Depository (CSD) has processed in excess of 64 976 securities deposits since going live with around 691 having being processed in July 2018.
Chengetedzai, which commenced operations in August 2014, facilitates the clearing, settlement and safekeeping of securities — equities, money market instruments bonds and mortgage backed securities and derivatives.
It also caters for the transfer of securities between beneficial owners via a book entry and for the settlement of cash following transactions on organised exchanges such as the Zimbabwe Stock Exchange (ZSE).
CDC CE Campbell Musiwa said the market value of the securities placed on the CSD also increased by 14,2% from US$ 4,794 billion as at 30 June 2018 to US$5,475 billion as at July 31 2018.
“The cumulative number of securities deposits processed since going live is now 64 976 after CDC processed 691 securities deposits in July 2018. The table below shows the dematerialisation statistics for the top 25 counters,” he said.
In the same month, CSD received and processed 2 231 ZSE trades, bringing the total number processed in 2018 to 11 896.
The average dematerialisation penetration ratio (demat ratio) across all counters increased marginally from 40% as at 30 June 2018 to 41% as at July 31 2018.
Dematerialisation is the process by which physical share certificates held by an investor are converted into an equivalent number of securities in electronic form and credited into the investors’ demat account.
The ZSE rebounded in the month of July 2018 following a 4% decline that was recorded in June 2018.
This saw the ZSE market capitalisation increasing by 11% to US$10,969 billion from USD$9,885 billion as at 30 June 2018. Dematerialised securities accounted for 50% of the ZSE Equities market capitalisation as at 31 July 2018.
In the same month, a total 232 new CSD accounts were opened, bringing the total number of accounts on the CSD to 24 468.
However, local investors still account for 94% of the CSD accounts opened.
Individual investors continued to dominate new account opening activity and accounted for 79% of the new accounts that were opened during the period.