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Chengetedzayi Securities Depository records uptick

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Chengetedzayi Depository Company (CDC) has processed a cumulative 91 396 deposits since going live following the processing of 431 deposits on the platform in September 2021, a market update for the month shows.

Chengetedzayi Securities Depository (CSD), which maintains the electronic register of shares on the Zimbabwe Stock Exchange (ZSE), was formed in 2010 to establish and operate a central securities depository for the Zimbabwean securities industry. It went live in 2014.

In the month of September, 594 new accounts were opened on the CSD compared to 667 accounts opened in August 2021, bringing the cumulative number of accounts opened on the CSD as of 30 September 2021 to 36 127.

Local investors accounted for 95% of all accounts opened on the CSD as at 30 September 2021. In the September 2021 update, CSD said the ZSE equities market capitalisation gained value by 30.32% closing the month of September 2021 at ZW$1.032 trillion with registered securities accounting for 53.48% of total market capitalisation for dematerialised shares, which totalled ZW$ 552.206 billion in value as at 30 September 2021.

“During the month under review, a total of 431 deposits were processed by CDC compared to 275 in the month of July 2021. This brought the cumulative number of deposits since going live to 91 396. The cumulative number of trades processed in 2021 currently stands at 84 669 as shown below: The CSD processed a total of 8 491 trades valued at ZW$4.74 billion during the month under review,” the report read.

The average dematerialisation penetration ratio (demat ratio) across all counters remained at 56.30% as at 30 September 2021. Clearing and settlement of trades dematerialisation enables the CDC to track shares when an investor approaches it to claim their shares.

Portfolios that fall under CSD are classified as unclaimed shares on the platform and are registered by Chengetedzai’s Investor Protection Fund section that is responsible for the safekeeping of unclaimed shares through Transfer Secretaries. — STAFF WRITER.

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