Democratic Alliance (DA) Member of Parliament (MP) David Maynier asked PIC CEO, Dr Daniel Matjila, about the impact of Zuma’s decision to fire Nhlanhla Nene as finance minister in December 2015.
The PIC conceded they had lost R99 billion between 9 and 10 December.
Redi Tlhabi spoke to Matjila about what effect this all had on their portfolio.
We didn't lose R100 billion. The portfolio dropped by R100 billion from 9.11 to 10.11...it was paper losses, and the market recovered quite considerably. By December, the portfolio had fully recovered those paper losses.— Daniel Matjila, CEO PIC
Tlhabi asked Matjila if it is unusual for this to happen over a 24 hour period?
Not really. We have seen portfolio drops on all kinds of news...the markets do react negatively to big changes in policy, or leadership changes as in this instance..— Daniel Matjila, CEO PIC
Nevertheless, he admitted he did feel shock on that day.
You panic, but I'm glad we recovered quickly.— Daniel Matjila, CEO PIC
Matjila did intimate that the appointment of Pravin Gordhan had helped the markets recover.
Listen to the interview below: