Longer PSE trading hours

James Ryan Jonas

The Philippine Stock Exchange (PSE) was to extend trading hours for two more hours starting June 30, 2009 but due to delays in the implementation of the new trading system and recent volatility in the financial markets, this plan has been shelved to October 2009, or probably even later.

According to the PSE, the extended trading hours will deliver more investments to the country because investors now have more time to trade in the local stock exchange.

Shortest trading hours

The PSE currently trades for only two and a half hours, from 9:30 am until 12 noon, one of the shortest trading hours in the world.

The proposal to extend trading hours would make the PSE operate an additional two hours in the afternoon, from 2 p.m. to 4 p.m. There will be a 2-hour break from 12 noon to 2 p.m.

Longer trading hours = more trades, more investments?

In 2002, the PSE experimented on extending trading hours from 1 p.m. to 2:30 p.m. but discontinued this after eight months. The expected increase in investments did not materialize supposedly because it coincides with the mid-day trading breaks of other stock markets in the region.

I personally think it’s worth trying this longer trading hours again. With the market starting to pick up, more and more investors — local and foreigners alike — might be interested to be more involved in the Philippine stock market now.

Do you yourself think longer trading hours is good for the local stock market?

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James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.