Maravi

Underperformance stocks affects institutional investors

Underperformance stocks affects institutional investors
Written by Kabanda Chulu

PIA Registrar Chris Mapipo on Thursday said the underperformance of stocks at the Lusaka Stock Exchange (LuSE) has affected operations of institutional investors who have pumped huge amounts of money at the stock market.

During a media briefing in Lusaka to explain the objectives of the Pensions and Insurance Authority (PIA) in the country, Mapipo said the industry in general had performed well and had been growing on an average of 24 per cent for the past eight years.

"Generally we have been performing well but the economic crisis has not spared any country because of linkages in that some assets especially for the mines are insured abroad hence being exposed," said Mapipo. "Locally we have minimal impact unless for those companies that have re-insured abroad and may experience difficulties if those assets are severely affected but to an extent, we have felt the global economic crisis with the underperformance at LuSE since most institutional investors are our members and their operations have been affected."

The PIA regulates two components of the industry that is, the insurance and the pension sub-sectors. The insurance sub-sector recorded a national turnover of K801 billion in 2008 as compared to K626 billion in 2007.
However, net assets under the national pension category declined from K1.9 trillion in 2007 to K 1.8 trillion last year.

The PIA is a quasi-government institution under the Ministry of Finance and National Planning with a mandate to regulate the conduct of the pensions and insurance industry through prudential supervision in order to protect the interest of pension scheme members and insurance policy holders and to foster the industry’s growth, development and stability.

Labels: CHRIS MAPIPO, GREAT DEPRESSION II, LUSE, PIA

posted by MrK @ 8:53 PM