Chengetedzai dominates registered ZSE secutities

Source: Chengetedzai dominates registered ZSE secutities | Herald (Business)

Chengetedzai says it will embark on sustained campaign to attract new listings on the ZSE

Nelson Gahadza

Chengetedzai Depository Company (CDC) says securities registered on its central securities depository (CSD) accounted for 43,90 percent of total market for dematerialised shares with a total value of $739,934 billion as at August 31, 2022.

Mr Prosper Mutorogodo, the company’s chief executive, in a CSD update for August 2022, said the value of registered securities will increase in tandem with the increase in number of listed companies.

“This will be achieved on the back of a sustained marketing campaign by CDC to attract new listings on ZSE,” he said.

Through sustained efforts by CSD, ZSE and the Securities and Exchange Commission of Zimbabwe (SecZim), the ZSE witnessed a number of listings in the form of Exchange Traded Funds.

According to Mr Mutorogodo, the investor type that holds the most significant value on CDC CSD is corporate and pension funds account for 35,34 percent and 22,57 percent.

In addition to that, he said that the CSD opened 453 new accounts in August 2022, resulting in 4,614 accounts being opened this year bringing the cumulative number of accounts opened on the CDC CSD to 42,568 as at August 2022.

Mr Mutorogodo said that local investors accounted for 95,10 percent, and foreign investors accounted for 4,90 percent of all accounts opened on the CDC CSD as of August 2022.

He said that individuals hold the largest number and proportion of accounts on the CSD while the other large portion of CSD accounts falls under the unclaimed shares.

“This has prompted the CSD to go on a market drive where efforts have been increased to identify those making up the unclaimed shares category,” he said.

According to a CSD update, the Zimbabwe Stock Exchange (ZSE) equities market capitalisation decreased by 18,50 percent in August, closing at $1,6 trillion.

The total turnover for trades on the Zimbabwe Stock Exchange settled through Chengetedzai Depository Company Limited CSD was $7,095 billion for the month under review.

During the month under review, a total of 383 deposits were processed and this brought the cumulative number of deposits since going live to 102,723.

Mr Mutorogodo said that the CSD continues on a dematerialisation campaign to increase the dematerialisation ratio in 2022 for individual and institutional investors still holding shares in physical form.

The average dematerialisation penetration ratio (Demat Ratio) across all counters was at 52,98 percent as at 31 August 2022. Mr Mutorogodo said that the cumulative number of trades processed in 2022 closed at 63,146. He said that the ZSE sustained its bear run in the month under review as the ZSE All Share Index plunged by -0,91 percent to close at a 6-month low as sell-offs continued to weigh on demand causing the bear run.

He said that in August 5 199 trades were processed on the CDC CSD, valued at $19,972 billion.

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