Trades on ZSE Depository tops ZWL$4.8bn
BUSINESS REPORTER
The value of trades that settled on the ZSE Depository was ZWL$4.8bn in the first quarter of the year as it capitalise on the addition of new members, a new report has shown.
A unit of the Zimbabwe Stock Exchange (ZSE), the ZSE Depository ended the quarter with 12 issuers after onboarding two Exchange Trade Funds (ETFs)—Morgan & Co Multi-sector ETF Trust and Datvest Modified Consumer Staples ETF.
In a quarterly update, the depository said trades executed and settled on the platform were 9427. The volume traded was 157,304,763.
The ZSE Depository, which started its operations in October 2021 with CAFCA Limited as the pioneer, said the average Demat ratio for the counters was 71.6%. Dematerialisation is the transition away from paper certificates to a form of electronic record for stock transactions. Of the demat ratio, equity constituted the bulk (94%) with ETFs accounting for 6%.
The ZSE Depository began operations in October last year, ending the monopoly that had been enjoyed by Chengetedzai Depository Company for the past seven years.
A Central Securities Depository (CSD) is an electronic register of securities such as shares, bonds, derivatives, Exchange Traded Funds. A CSD allows for ownership to be easily transferred through electronic book entry as opposed to the manual paper certificate transfers. The main functions of the CSD includes the deposit and withdrawal of securities, clearing and settlement of trades, safekeeping of securities and management of corporate actions.
