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Business Reporter

Chengetedzai Depository Company (CDC) says the stock market is experiencing high trading volumes and hopes the trend will persist for the foreseeable future.

In its operating update for June 2024, CDC said there could also be an improvement in activity after the scrapping of the vesting period, which has reduced the administrative burden.

“Going forward CDC looks to engage issuers to centralise processing of employee share ownership schemes and also locking of accounts in closed periods. This will help smoothen the process and also provide assurance that there is no insider trading,” it said.

CDC, through its Central Securities Depository (CSD), ensures clearing, settlement and safe custody of securities for companies listed in Zimbabwe.

The company is also looking at opportunities to expand digital offerings in response to the rapid development of the global financial markets.

According to CDC’s June 2024 operating update, the cumulative number of trades processed on the firm’s CSD in 2024 closed at 20,540.

For the period April 2024 to June 30, 2024, the total value of trades settled is ZiG$192,532 million.

As of June 30, 2024, the average dematerialisation penetration ratio across all counters was at 63,68 percent.

Dematerialised securities registered on the company’s CSD accounted for 60 percent of the total market capitalisation for dematerialised shares on the Zimbabwe Stock Exchange (ZSE).

The value of the shares was ZiG$23,100 billion as of June 30, 2024.

“Corporates and pension funds hold the most significant value on the CDC CSD accounting for 30,04 percent and 24,45 percent respectively,” reads the update.

CDC indicated that individuals have the highest number of accounts at 53,04 percent of the total accounts on the CSD as at June 30, 2024.

According to the operating update, the ZSE market capitalisation closed the second quarter of 2024 at ZiG$38,710 billion.

The total value of trades settled through CDC’s central securities depository system in June 2024 was ZiG$98,293 million.

According to the report, in the quarter under review, a total of 625 new accounts were opened, bringing the total accounts opened on CSD this year to 47,132.

Chengetedzai said local investors continued to dominate the number of accounts opened, accounting for 95,13 percent of accounts opened.