Trades balloon in the market, Chengetedzai
The market is currently experiencing increased trading and hopes are high that volumes will continue to persist, according to Chengetedzai Depository Company (CDC).
CDC in its operating update for June 2024, said there could also be an improvement in activity after scrapping the vesting period that has also reduced the administrative burden.
“Going forward CDC looks to engage issuers to centralise processing of employee share ownership schemes and also locking of accounts in closed periods.
This will help smoothen the process and also provide assurance that there is no insider trading,” it said.
CDC through its Central Securities Depository (CSD) ensures clearing, settlement and safe custody of securities.
The Depository company is also looking at opportunities to expand digital offerings as a result of the rapid development of the global financial markets.
According to the June 2024 CSD operating update, the cumulative number of trades processed on CDC CSD to date in 2024 closed at 20,540 and for the period from April 2024 to 30 June 2024, the total value of trades settled is ZiG$192,532 million.
As at June 30, 2024, the average dematerialisation penetration ratio (Demat Ratio) across all counters was at 63,68 percent.
In terms of the market value statistics, dematerialised securities registered on the CDC (CSD) accounted for 60 percent of the total market capitalisation for dematerialised shares on the Zimbabwe Stock Exchange (ZSE) and their total value was ZiG$23,100 billion as of 30 June 2024.
“Corporates and pension funds hold the most significant value on the CDC CSD accounting for 30,04 percent and 24,45 percent respectively,” reads the update.
CDC indicated that individuals have the highest number of accounts opened translating to 53,04 percent of the total accounts on the CSD as at June 30, 2024.
According to the operating update, the Zimbabwe Stock Exchange equities market capitalisation closed the second quarter of 2024 at ZiG$38,710 billion.
The total value of trades that settled through CDC’s central securities depository system in the month of June 2024 was ZiG$98,293 million.
According to the report, in the quarter under review, a total of 625 new accounts were opened bringing the total accounts opened on CSD this year to 47,132.
Chengetedzai said local investors continued to dominate the number of accounts opened, accounting for 95,13 percent of accounts opened.
