41 percent of ZSE market value dematerialised
AT least 41 percent of the Zimbabwe Stock Exchange (ZSE)’s market value had by July 31, 2015 been dematerialised with the shares sitting on the central security depository (CSD) platform worth US$1,6 billion against a market capitalisation of US$3,81 billion.
According to Chengetedzai Depository Company, (CDC) the cumulative number of dematerialisation transactions processed in July increased 33 percent to 29 555 from the previous figure of 22 094.
Chengetedzai said this was underlined by the drive by investors to dematerialise shares in the nine newly on-boarded counters and automation of the ZSE trading platform.
The average dematerialisation ratio across all counters increased to 26 percent from 24 percent with the top 20 counters by dematerialisation ratio now all above 30 percent with Zimplow Holdings Limited having the highest ratio at 99 percent.
“The new counters have registered a phenomenal rate of dematerialisation with Econet (64 percent), PPC (65 percent) and RioZim (74 percent) moving into the top ten and Innscor (38 percent) into the top twenty within their first month of being placed on the CSD,” said CDC.
The cumulative number of CSD accounts opened now stands at 2 775.
Accordingly, the month of July 2015 registered a 33 percent increase in cumulative dematerialisation transactions, which are now sitting at 29,555.
Counters such as Econet, PPC and RioZim moved into the top 10 and Innscor into the top 20 of counters by dematerialisation ratio.
Chengetedzai said the automation ZSE trading platform has brought about an increase in the number of trades per month being matched at beneficial owner level.
At beneficial owner level, cumulative transactions increased by 22 percent from
8 541, as at June 30 to 10 466. Trading activity is however, dominated by the top 20 counters by dematerialisation penetration ratio.