Insurance and Pensions constitute bulk of market value placed on CSD
By Insurance24
HARARE- Pension funds and Insurance constitute a combined 42,23% of the total market value of securities placed on the Central Securities Depository (CSD).
According to a CSD operational update for December 2018, the market value of the securities placed on the CSD increased by 6% from US$7.974 billion as at 30 November 2018 to US$ 8.470 billion as at 31 December 2018.
The CSD update shows that Pension funds with a market value of $1,61 mln constituted 19,08% while Insurance at $1,96 mln contributed 23,15%.
Foreign investors constitute bulk of market value at $2,49 mln, accounting for 29,47%, Unit Trust
Funds are the lowest at $27 000, which was a 0,32% contribution. According to the report, the
Zimbabwe Stock Exchange (ZSE) Equities market capitalization increased by 12% from $17.317 billion as at 30 November 2018 to USD$19.355 billion as at 31 December 2018.
Dematerialized securities accounted for 44% of the ZSE Equities market capitalization as at 31 December 2018.
“Considering the year 2018 as a whole, the Equities market capitalization increased by US$9.775 billion from US$9.580 as at 31 December 2017, indicating inflationary pressures within the economy which increased as the year progressed,” reap part of the CSD report.
Meanwhile, during the month of December 2018, only two new CSD accounts were opened by pension funds while insurance had none.
Pension funds now have a cumulative 630 accounts compared to 628 by November 2018. Insurance accounts remained at 31.
