Securities deposits on Chengetedzai up 3,64%


Underperformance of the Zimbabwe Stock Exchange and huge voids in the property sector has seen most insurance companies reducing their exposure to traditional assets

By Melody Chikono

ACTIVITY on Chengetedzai Securities Depository (CSD) has continued on an upward trend with the total number of trades received and processed in January 2019 topping 2 194, while cumulative securities deposits increased 3,64% as the Zimbabwe Stock Exchange (ZSE) equities market began on a high note.

The cumulative number of securities deposits processed since going live increased by 3,64% to 79 419 after CSC processed 5 341 securities deposits in January 2019.

In the January update CSC received and processed 2 194 ZSE trades in the month of January 2019. The total number of trades processed since going live now stands at 62 746.

The ZSE equities market kicked off the year on a high note with turnover increasing by 18,66% from US$92,935 million in December 2018 to US$110,277 million in January 2019.

The market capitalisation of the ZSE continued on an upward trajectory by crossing the US$20 billion mark to close the month of January 2019 at US$20,978 billion from US$19,355 billion in December 2018.

This saw the market value of the securities that are placed on the CSD also increasing marginally by 0,87% from US$8,470 billion as at December 31 2018 to US$9,210 billion as at 31 January 2019. On the other hand there was a marginal increase in the average dematerialisation penetration ratio (demat ratio) to 44% as at January 31 2019 from 43, 9% as at December 31 2018.

Proplastics and Art Corporation dominated the counters at 96% followed by Masimba at 95%

Dematerialisation is the process by which securities held in physical form are cancelled and destroyed and the ownership thereof is entered and converted into an equivalent number of securities in electronic form and credited in the investors’ account called the demat account with a depository participant.

Dematerialised securities accounted for 44% of the ZSE equities market capitalisation as at January 31 2019.

During the month, 325 new CSD accounts were opened, bringing the total number of accounts on the CSD to 26 674.

Overall, local investors continued to dominate the CSD accounts that have been opened, representing 94% of CSD accounts.

There were no new companies listed on the ZSE during the month under review with the total number of listed securities on-boarded on the CSD remaining at 63.

These securities comprised 61 equities and two debt securities.