CDC cumulative securities hit 77 000

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CHENGETEDZAI Depository Company (CDC) says it processed 22 255 securities deposits in the year 2018, a company official has said.
This brings the cumulative securities deposits since going live to 76 629.

Melody Chikono

Of these, 2 553 securities deposits were processed in the month of December 2018.

Turnover on the equities market closed the year at US$926,35 million compared to US$695,1 million achieved in 2017 as the market consistently experienced strong trading volumes in 2018.

This was driven by investors who sought to hedge against inflationary pressures in the economy by investing in the equities market.

In an update, CDC chief executive Campbell Musiwa said the equities market capitalisation for 2018 increased by US$9,775 billion from US$9,580 billion as at December 31, 2017. Musiwa said this could be indicative of inflationary pressures within the economy.

Month-on-month, the Zimbabwe Stock Exchange (ZSE) market capitalisation increased by 12% to US$19,3 billion as at December 31, 2018 from US$17,3 billion as at November 30, 2018.

The market value of the securities deposited with the CDC increased by 6% to US$8,470 billion as at December 31, 2018, up from US$7,974 billion as at November 30 2018.

Dematerialised securities accounted for 44% of the ZSE Equities market capitalisation as at December 31, 2018.

The average dematerialisation penetration ratio (demat ratio) across all counters increased marginally from 43,5% to 43,9% as at December 31, 2018 from 39% margins in December 2017.

Musiwa said the equities market turnover for December 2018 declined by 21% to US$92,935 million from US$118,013 million in November 2018.

During the month of December 2018, the CDC received and processed 2 677 ZSE trades, bringing the total number of trades processed in 2018 to 25 260.

“Local and Foreign investors opened 133 new accounts on the CSD in December 2018. This brings the total number of accounts opened in 2018 to 3 962.

Overall, the cumulative number of accounts opened since going live now stands at

26 349. Local investors dominated the CSD accounts that have been opened, accounting for 94% of CSD accounts. The market value of the securities placed on the CSD increased by 6% from US$7,974 billion as at November 30, 2018 to US$8,470 billion as at December 31, 2018. Dematerialised securities accounted for 44% of the ZSE Equities market capitalisation as at December 31, 2018. The following table shows the distribution of market values by account class,” he said.

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