ZSE rally bolsters Chengetedzai

CHENGETEDZAI Securities Depository (CSD) processed trades amounting to a $129,52 billion in 2021 with the platform handling 6 708 trades valued at $33,56 billion in December alone.

The performance was propelled by a strong rally on the Zimbabwe Stock Exchange (ZSE) throughout 2021, with demand pushing trades.

The ZSE equities market capitalisation increased by 2,1% for the month of December 2021 to $1,317 trillion while total turnover for the month was $16,782 billion which was an increase of 88,23% compared to the previous month.

In a December 2021 trading update, Chengetedzai, however, said the activity on CSD saw account opening decreasing by 55,47% in December 2021 after 338 new accounts were opened compared to 759 accounts opened in November 2021.

“As a result the cumulative number of accounts opened on the CSD as of 31 December 2021 was 37 944.

“CSD is embarking on an exercise that will see accounts opened in the CSD both individual and corporate increasing significantly over the year 2022,” CSD said.

Although individuals were the largest group with regards to number of accounts at 43,99%, pension funds and corporate accounts held the largest share of value on the CSD at 29,22%, followed by insurance companies at 17,07%.

Securities registered on the CSD accounted for 52,65% of total market capitalisation for dematerialised shares valued at $693,443 billion as of December 31, 2021.

Dematerialisation during the month under review saw 2 878 deposits being processed by CDC compared to 2 552 in November 2021, bringing the cumulative number of deposits since going live to 93 948.

Dematerialisation is the move from physical certificates to electronic bookkeeping where actual stock certificates are then removed and retired from circulation in exchange for electronic recording.

It applies not only to stocks, but also to other forms of investment such as bonds, mutual funds and government securities.