SECURITIES registered on the Chengetedzai Securities Depository (CSD) account for 42,56% of total market capitalisation for dematerialised shares valued at $774,168 billion.
According to a trading update released by Chengetedzai Depository Company (CDC), the figure is expected to increase given sustained efforts to attract new listings on the local bourse.
Dematerialisation refers to the process by which the physical share certificates of a company are converted to an electronic form.
“Securities registered on the CDC's CSD accounted for 42,56% of total market capitalisation for dematerialised shares, and their total value was $ 774,168 billion as of 30 September 2022,” CDC said yesterday.
“This is expected to increase given the sustained marketing campaign by CDC to attract new listings on the Zimbabwe Stock Exchange (ZSE). During the month under review, a total of 181 equities deposits were processed.
“This brought the cumulative number of deposits since going live to 103 030. CDC CSD continues on a dematerialisation campaign to increase the demat ratio in 2022 for individual and institutional investors still holding shares in physical form.”
During the period, Zimre Holdings, Proplastics and OK Zimbabwe Ltd topped the dematerialisation list at 99% while Old Mutual ZSE Top Ten ETF (exchange traded funds) and Meikles Limited followed closely at 98%.
Econet Wireless Zimbabwe Limited, Power Speed Electrical Limited and Delta Corporation closed the period at the tail end at 52%, 56% and 59%, respectively.
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The average demat ratio across all counters was at 56,04%, with 18 counters above the 70% threshold as at September 30 2022.
Corporates and pension funds were the investor categories that held the most significant value on the CSD, accounting for 34,68% and 22,91%, respectively.
During the month under review, a total of 181 equities deposits were processed bringing the cumulative number of deposits since going live to 103 030.
“CDC CSD continues on a dematerialisation campaign to increase the demat ratio in 2022 for individual and institutional investors still holding shares in physical form,” CDC said.
CDC CSD opened 560 new accounts in September 2022, resulting in 5 189 accounts being opened this year to date while the cumulative number of accounts opened on the CDC CSD closed the month at 43 143.
Local investors accounted for 95,07%, and foreign investors accounted for 4,93% of all accounts opened on the CDC CSD during the period.
ZSE equities market capitalisation decreased by 7,92% for September 2022, closing at $1,819 trillion.
The total turnover for trades on the Zimbabwe Stock Exchange settled through the CDC CSD was $3,518 billion for the month under review.
