Local investors dominate CSD platform

LOCAL investors maintained their stranglehold on accounts opened at the Chengetedzai Securities Depository platform, closing the month of September sitting at 95,02%, according to the Chengetedzai Depository Company (CDC).

Foreign investors accounted for the balance (4,88%) of the accounts opened on the platform.

In a trading update for the month of September 2023, CDC said the total turnover for trades for the month under review was ZWL$87,960 billion, which is the highest so far this year.

“Local investors accounted for 95,12% of accounts opened as of September 30, 2023,” the update read in part.

“Individuals continue to dominate the number of accounts opened accounting for 52,03% of the total accounts on the CSD (central securities depository). Equities market capitalisation on the Zimbabwe Stock Exchange gained by 1,54%, closing the month of September 2023 at ZWL$9,723 trillion.”

Unclaimed shares rallied behind individual account opening at 35,32%, while corporates stood at 5,02%.

During the month, the platform saw a total of 144 new accounts that were opened, bringing the total accounts opened this year to 2 098.

Resultantly, the cumulative number of accounts opened on the CSD since inception stood at 46 083.

On the other hand, dematerialised securities registered on CDC CSD accounted for 60,45% of the total market capitalisation for dematerialised shares on the ZSE, and their total value was ZWL$5,287 trillion.

Dematerialisation relates to the conversion of physical shares into electronic format.

During the period, corporates and pension funds held the most significant value on the CSD, accounting for 33,48% and 26,92% respectively.

The average dematerialisation penetration ratio (Demat ratio) across all counters was at 50,14% at the end of September.

OK Zimbabwe Limited, Proplastics Limited, Zimre Holdings Limited and Meikles Limited led the dematerialisation pack at 99%, while starafricacorporation followed closely at 97%.

Power Speed Limited had the lowest Demat ratio of 56% during the period.

Over the years, the ratio has been hovering around 50% as people held on to their physical shares in the absence of laws that compel them to convert.-newsday