Rising market activity sees 124 new accounts opened on the CSD in September

Published: 17 October 2019
A total of 124 new accounts were opened on the Central Securities Depository in September, bringing the total number of accounts that have been opened to 26,845. This is against the historical peak of 200 000 active trading accounts on the ZSE.
According to the monthly update from Chengetedzai Depository Company, local investors still dominate membership, accounting for 94% of the total CSD accounts. From the new accounts opened, 105 were from individuals, 11 were corporates, four from Trusts, none were foreign and two pension funds opened a new account. Individuals now hold 27.86% of accounts while Deceased Estates and Trusts hold 60.79% and foreigner hold 3.61%.
The ZSE saw a rebound during the month, with market capitalization gaining 40.62% to $30.57 billion. Subsequently, the market value of the securities placed on the CSD increased by 42% to $14.15 billion from $9.92 billion at the end of August. Local corporates hold the highest share of that market value at $3.4 billion, which adds up to 25%. Foreigners follow with 23.74% of the market value while Insurance companies hold 22.28%.
During Septemeber turnover on the ZSE increased by 53% from the $109 million in August to $166.56 million. The CSD received and processed a total of 3,206 trades to leave the cumulative number of trades processed in 2019 at 23,934, closing in on the 25,260 trades processed in 2018. At the end of the month, the CSD had processed a total of 84,509 trades worth $6.5 billion since going live.

Dematerialized securities accounted for 46.35% of the ZSE equities market capitalization as at 30 September 2019. Masimba Holdings,and Proplastics have the highest dematerialization ratios at 99% and 98% respectively. Meanwhile the average penetration ratio across all counters was unchanged at 45.3%. During the month the CDC processed 310 securities deposits to bring the total number since going live to 84,561.
Looking ahead, the CDC commented on the prospects of the introduction of new financial securities for trading on the local bourse saying, "The ZSE is currently pursuing Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) and CDC is keeping abreast with developments in this area."
- finx
Tags: CSD,


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