The Philippine Stock Exchange has finalized plans to extend trading hours beginning this October, in a bid to attract more investors and prepare for cross-border trading with neighboring Southeast Asian nations.
On Oct. 1, trading will open at 9:30 a.m. and close at 1 p.m., the PSE said shortly after its board of directors approved the proposal.
Currently, the market is open from 9:30 a.m. to 12:10 p.m.
On Jan. 1, 2012, trading hours will be extended further into the afternoon. The PSE said that there would be a lunch break between trading hours.
The morning session will last from 9:30 a.m. to noon, while the afternoon session will start at 1:30 p.m. until 3:30 p.m.
“This move will align the PSE with its peers in the region and is a positive signal that the local market is ready to take off. Afternoon trading is also expected to boost liquidity as it enhances the ability of investors to react to developments in other markets in a different time zone,” PSE president and chief executive officer Hans Sicat said in a statement.
Daily turnover year-to-date stands at an average of P5.3 billion.
“We are cognizant of the benefits of extended trading, and we are also well aware of the challenges that it provides. We are optimistic that with the initiatives we have put in place prior to this move … we will be able to enhance investor interest in the stock market,” Sicat said.
With the local stocks index hitting record levels, PSE chair Jose Pardo said that it’s timely to implement longer trading hours for the local bourse to be able to “identify with the rest of the world.”
“The countdown with Asean is fast approaching. We’re looking at March next year to begin that process of integration,” Pardo said.