MANILA, Philippines—Some stockbrokers are not fully buying the plan of the Philippine Stock Exchange (PSE) to extend trading hours in the afternoon, saying the exchange should not force them to trade outside of the trading floor since this would bloat operating costs.

Eagle Equities Inc. president Joseph Roxas said he was against the mandatory “off-floor,” or Internet-based, trading in the afternoon, arguing that the PSE was essentially passing on additional costs to stockbrokers.

“That’s crazy,” Roxas said. “It should be optional. Does that mean that I have to pay for a new set of phones and computers for my office when I could use what I already have on the trading floor? The board should reconsider the implementation of this plan. There should be consultation among all brokers before they implement this. I am an advocate of afternoon trading but forcing everybody to go off-floor is wrong.”

Lucky Securities Inc. president Eddie Gobing said the PSE should consider implementing extended trading at the right time, since for this plan to work, trading volumes should average at least P4 billion a day.

“I think PSE management should do its job by enticing more companies to list (conduct public offers) so that there will be volume,” Gobing said.

So far this year, only two companies—Pepsi Cola Products Philippines Inc. and San Miguel Brewery Inc.—conducted initial public offerings.

Last year was a banner year for the PSE since 10 companies conducted their IPOs—Oriental Peninsula Resources Group Inc., eTelecare Global Solutions Inc., Splash Corp., iRemit Inc., Anchor Land Holdings Inc., GMA Network Inc., Aboitiz Power Corp., Phoenix Petroleum Phils. Inc., National Reinsurance Corporation of the Philippines and Pacific Online Systems Corp.

Alejandro Yu, president at RS Lim & Co. Inc. and concurrently a PSE director, said prospects for the market might become more upbeat next year in time for the start of afternoon trading.

“The opportunity for us to test that (projection) is there next year. We are united in the board in saying if not now, when. But we are considering all the comments made by brokers,” Yu said.

Yu said brokers who were opposing the plan have cited additional costs such as terminals, laptops and telephone connections to conduct off-floor trades.

Foreign brokers, on the other hand, have cited the opportunity to serve Asian and European clients when the stock exchange opens trading between 2 and 4 p.m., Yu said, jiving with trading hours not only of markets in Asia, but also in Europe, like Euronext, Deutsche Boerse, OMX, Bolsa de Madrid, and the London Stock Exchange.

“With the new trading system, we are giving brokers a chance to maximize their volumes,” Yu said.

Online broker CitisecOnline.com said it was not worried about the current bearishness in the stock market.

“Afternoon trading will definitely increase the profile of the Philippine stock market abroad. We are not worried about the bear market because as we all know, this too will pass,” said CitisecOnline president Conrado Bate.

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