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Nelson Gahadza
Chengetedzai Depository Company (CDC) says Tanganda Tea Company became the latest issuer to come on board its Central Securities Depository (CSD) on its return to the Zimbabwe Stock Exchange (ZSE).
The securities custodial company said Tanganda’s return, after a 14-year absence from ZSE, resulted in an increase of de-materialised shares and account opening activity.
This comes at a time Chengetedzai, SecZim and the ZSE are engaged in a legal battle in which Chengetedzai is challenging the regulator’s directive on the securities migration process from its CSD.
The regulator gave a directive for migration of securities from Chengetedzai’s CSD, after the ZSE launched its own CSD, which the former deemed illegal.
In an operating update for January 2022, Chengetedzai said the ZSE equities market capitalisation increased by 12 percent in January 2022 to $1 475 trillion.
According to the update, securities registered on the Chengetedzai’s CSD accounted for 53,07 percent of total market capitalisation for de-materialised shares, valued at $782 846 billion as at January 31, 2022.
“This is expected to increase as new listings on ZSE continue to choose CDC CSD as their CSD of choice.
Tanganda Tea Company is the latest issuer to be added to the CDC CSD as they re-listed on the Stock Exchange,” Chengetedzai said.
The company added that CDC CSD account opening activity increased by 79,88 percent in January 2022 compared to the previous month.
“CDC CSD opened 608 new accounts compared to 338 accounts opened in December 2021. As a result, the cumulative number of accounts opened on the CDC CSD as of January 31, 2022 was 38 552,” said Chengetedzai.
The update shows that local investors accounted for 96,40 percent of all accounts opened on the CDC CSD as of January 31, 2022.
CDC said the ZSE equities market capitalisation increased by 12 percent in January to $1 475 trillion. The total turnover for trades on the Zimbabwe Stock Exchange CSD was $4 149 billion for the month under review.
During the month under review, a total of 2 974 deposits were processed by CDC CSD compared to 2 878 in December 2021, bringing the cumulative number of deposits since going live to 96 922.
“CDC CSD is embarking on a de-materialisation campaign to increase the de-materialisation ratio in 2022 for individual and institutional investors that still hold shares in physical form,” said the company.
According to the update, the average de-materialisation penetration ratio (Demat Ratio) across all counters was at 55,44 percent as at January 31, 2022.
The Old Mutual Top 10 ZSE Exchange Traded Fund (ETF) is the top de-materialised counter at 100 percent. Proplastics Limited and Meikles are the second and third most de-materialised counters at 99 and 98 percent respectively.
According to Chengetedzai, the investor type that holds the largest value on CDC CSD are corporate and pension funds accounts with 28,55 percent and 27,43 percent respectively.
Individuals with 43,99 percent of accounts on the CDC CSD hold 2,89 percent by value in comparison.
CDC said in the month of January, a total of 9 240 trades were processed, valued at $7 780 billion.
Online Reporter