CHENGETEDZAI Depository Company (CDC) says it sees an upsurge in its revenue streams buoyed by its partnership with the Zimbabwe Stock Exchange (ZSE) in the development of various investment products, a company official said.
Chief executive Campbell Musiwa said his company would closely monitor the ZSE’s pursuance of Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs).
ZSE’s ETFs are part of a wide investment offering as it contains an assortment of stocks — a basket tracking an index.
The collaboration in making new products is expected to allow engagement of new potential issuers regarding the integration of securities on the platform.
“The company’s focus in the short-term is on the introduction of new products and enhancing existing ones in order to increase the company’s revenues. CDC will continue to work hand-in-hand with the ZSE on this area,” Musiwa said.
“The ZSE is currently pursuing Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) and CDC is keeping abreast with developments in this area.”
In the month of September the total number of accounts on the CSD stood at 26 845, after 124 new accounts were opened.
Overall, local investors dominate the CSD accounts that have been opened, accounting for 94% of CSD accounts as shown in the chart.
This came as the ZSE equities market capitalisation increased by 40,62% to close the month of September 2019 at ZW$30,57 billion compared to ZW$21,74 billion as at end of August 2019.
The market value of the securities placed on the CSD increased by 42% from ZW$9,92 billion as at August 31, 2019 to ZW$14,15 billion as at September 30, 2019. Dematerialised securities accounted for 46,35% of the ZSE equities market capitalisation as at September 30 2019 compared to 45,62 % in August 2019.
The ZSE equities market turnover increased by 53% from ZW$109,04 million for January 2019 to ZW$166,56 million while the total number of trades processed in 2019 now stands at 84 509.
On dematerialisation, CSD processed 310 securities deposits during the month bringing the cumulative number of deposits since going live to 84 561.
The average dematerialisation penetration ratio (demat ratio) across all counters remained at 45,3% as at September 30, 2019.
This figure has been static for half a year and it has been basically buoyed by lack of legislation that compels investors to hold securities in electronic form.
Musiwa noted that while only dematerialised shares can be traded, the majority of the shares that have not been dematerialised relate to long-term strategic shareholdings by investors.