Chengetedzai platform breaches $1 trillion mark

THE Chengetedzai Securities Depository (CSD) started the year on a positive note with securities registered on the platform breaching the $1 trillion mark in the month of January 2023.

During the period, the securities registered on the platform accounted for 41,65% of the total market capitalisation for dematerialised shares.

Dematerialisation is the process of converting physical certificates to a form of electronic record for stock transactions.

In a trading update for the month of January 2023, Chengetedzai Depository Company (CDC) said a total of 127 equities deposits were processed.

This brought the cumulative number of deposits since going live to 103 338 with the average dematerialisation penetration ratio (Demat ratio) across all counters standing at 57,62%.

“Securities registered on the CDC CSD accounted for 41,65% of the total market capitalisation for dematerialised shares, and their total value was $1 024,71 trillion as of January 31, 2023. During the month under review, a total of 127 equities deposits were processed. This brought the cumulative number of deposits since going live to 103 338,” CDC said.

OK Zimbabwe, Proplastics Limited and Zimre Holdings Limited led the dematerialisation pack scoring 99% during the month, followed by Meikles Limited and starafricacorporation at 98% and 97%, respectively.

Econet Wireless, Powerspeed Limited and Delta Corporation were at the tailend of the top 25 list having scored 52%, 56% and 59%, respectively, during the month.

During the period, individuals held the largest number and proportion of accounts on the CSD.

The other large portion of CSD accounts fell under the unclaimed shares.

“CDC CSD continues on the market drive where efforts have been increased to identify those making up the unclaimed shares category so that they claim their shares,” the company said.

Zimbabwe Stock Exchange (ZSE) equities market capitalisation in January increased by 20,30%, closing at $2,460 trillion.

The total turnover for trades on the ZSE settling through Chengetedzai Depository Company Limited CSD (CDC CSD) was $7,674 billion for the month under review.

A total of 271 new accounts were opened during the month, with the cumulative number of accounts opened on the CDC CSD as of January 31, 2023 standing at 44 249.

Local investors accounted for 95,10%, and foreign investors accounted for 4,90% of all accounts opened on the CDC CSD during the period.

“The investor type that holds the most significant value on CDC CSD is corporate and pension funds which account for 35,38% and 15,82%, respectively, “ CDC said.-newsday