A total 180 new accounts were opened on the Central Securities Depository in June, bringing the total number of accounts that have been opened since going to 27,607. This is against the historical peak of 200 000 active accounts trading on the ZSE.
According to the June update from Chengetedzai Depository Company, local investors still dominate accounting for 94% of CSD accounts. Of the new accounts opened, 144 were from individuals, 15 were corporates, 14 from Trusts, 2 were foreign while 1 pension fund opened a new account. Individuals now hold 27.21% of accounts and Deceased Estates and Trusts hold 61.50%.
The market value of the securities placed on the CSD increased by 8.19% to $12.5 billion as at 30 June 2019 from $11.4 billion as at 31 May 2019. Despite only accounting for 3.63% of the CSD accounts, Foreign investors hold the highest share of market capitalization at 25.25% which amounts to $3.1 billion. Corporates hold the second highest share at 24.68% with insurance companies following at 22.44%.
Dematerialized securities accounted for 45.3% of the ZSE equities market capitalization as at 30 June 2019. Proplastics, ART holdings and Masimba Holdings have the highest dematerialization ratios at 97% and 96% respectively, while the average penetration ratio across all counters remained unchanged at 45%.
The equities market experienced a contrasting month in June as trading activity drastically tailed off following the monetary and exchange rate policy changes made during the last week. The CSD updated on the 90-day vesting period for dual listed shares, noting the impact on Amalgamated Regional Trading Corporation Holdings, CAFCA Limited, Hwange Colliery Company Limited, Meikles Limited, NMBZ Holdings Limited, PPC Limited, Old Mutual Limited and Seedco International Limited
Despite the change in market conditions turnover rose to $236 million in June from $194 million in May, while market cap rose by 8% to $27 billion from $24.9 billion at the end of May.
During the month CSD received and processed 3,708 ZSE trades in the month of June 2019. The total number of trades processed in 2019 now stands at 15,585 valuing $1.6 billion, which is closing in on the 2018 total of $1.87 billion having already surpassed the 2017 total at $1.36 billion. Since going live the CDC has processed a total of 76,160 trades valuing $5.6 billion. The CSD also processed 530 securities deposits in June 2019 leaving the cumulative number of securities deposits processed since going live at 82,773. – FinX