Securities placed on the CSD in December amount to US$1,2 billion


The Zimbabwe Stock Exchange

The CSD Operational Review is expected to pave way for market participants to recommence discussions on migration to a T+3 settlement cycle

CHENGETEDZAI Depository Company has said that it currently finalising the central securities depository Operational Review which will among other things pave way for market players to re-commence discussions on the migration to a T+3 settlement cycle.

Chengetedzai Chief exectutive Campbell Musiwa in a trading update said that finalisation of the CSD Operational Review and efforts to broaden the product base will be the main areas of focus in the short to medium term.

“The CSD Operational Review is expected to pave way for market participants to recommence discussions on migration to a T+3 settlement cycle; and changing the settlement model from DVP 1 to DVP 2.”

The move comes after the total number of securities deposit transactions processed through the CSD system increased 2.6% to 34 302 in December 2015 from the November level of 33 446. Musiwa said most of the actively traded counters are now above the average Dematerialisation Ratio of 31%.

“The average ratio of Electronic Shares/Total Issued Shares or Dematerialisation Ratio (Demat Ratio) across all counters increased 1% to 31% and the highest ratio is 79% for Pearl Properties Limited,” he said.

Musiwa said in terms of clearing and settlement of trades, December 2015 recorded improved turnover of $16.32 million which was an improvement compared to the October and November 2015 figures of $12.86 million and $8.9 million respectively. During the month, 750 ZSE trades were received for processing by the CSD bringing the cumulative trades received since going live to 8,064.

“At beneficial owner level, total transactions now stand at 17 602. This marks an increase of 7% from 16 382 as at 30 November 2015.”

The on-boarding of Getbucks on the CSD platform brings the total number of on-boarded companies to 63.

Cumulative number of accounts opened on the CSD now stands at 3 753 and local investors account for 74% of accounts opened while foreigners account for 23%. Overall, a total of 471 new CSD accounts were opened in December 2015. Individual investors continue to dominate with 46% of the CSD accounts opened to date. At the global level, accounts opened increased by 14% in December 2015.

The ZSE market capitalisation increased to $3.07 billion in December 2015 from $3.06 billion the previous month. That resulted in securities placed on the CSD during the month to be worth $1.206 billion which is 40% of the ZSE market value. FinX
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