HARARE – The Chengetedzai Depository Company (CDC) has reported a surge in trading volumes on the Zimbabwean stock market and expressed optimism that this trend will continue in the coming months.
In its June 2024 operating update, CDC noted that the removal of the vesting period has eased administrative processes and could further boost market activity. The company also highlighted plans to engage issuers to centralize the management of employee share ownership schemes and implement account locking during closed periods, a move aimed at preventing insider trading and ensuring smoother operations.
CDC operates Zimbabwe’s Central Securities Depository (CSD), which facilitates the clearing, settlement, and safe custody of securities for companies listed on the Zimbabwe Stock Exchange (ZSE). The company is also exploring opportunities to expand its digital services in response to the fast-evolving global financial markets.
The June 2024 report revealed that CDC processed 20,540 trades on its CSD platform during the year. Between April and June 2024, the total value of trades settled reached ZiG$192.532 billion. By the end of June, the average dematerialization penetration ratio across all counters was 63.68 percent.
Securities registered on CDC’s CSD accounted for 60 percent of the total market capitalization of dematerialized shares on the ZSE, valued at ZiG$23.1 billion as of June 30, 2024. The report also indicated that corporations and pension funds held the largest share of these securities, representing 30.04 percent and 24.45 percent, respectively.
Individual investors, however, led in terms of account numbers, with 53.04 percent of total accounts on the CSD as of June 2024. The total market capitalization on the ZSE closed the second quarter of 2024 at ZiG$38.71 billion, with the value of trades settled through CDC’s system in June alone amounting to ZiG$98.293 million.
During the second quarter, 625 new accounts were opened on the CSD, bringing the total number of accounts opened in 2024 to 47,132. Local investors continue to dominate, accounting for 95.13 percent of all new accounts.
CDC remains committed to enhancing Zimbabwe’s securities market infrastructure and supporting the growing demands of investors and issuers.