Extended PSE stock trading hours



Recently there is talk again that the Philippine Stock Exchange (PSE) plans to extend the trading hours. Stock trading in the Philippines is one of the shortest in the world, with trading in the PSE lasting only for two and a half hours, from 9:30 am until 12 noon.

Members of the PSE board are reportedly mulling the  approval of this trading extension proposal. According to an Inquirer report, “in a meeting on Wednesday, members of the board arrived at a consensus to reactivate the policy on afternoon trading to ‘align’ local markets with the rest of the world.”

The current proposal is to extend trading for 2 more hours, from 2:30 to 4:30 p.m. There will be a trading break after the current closing time at noon.

The same proposal was made in 2009 but was scrapped when stock markets around the world declined due to the economic recession.

In 2002, the PSE already implemented additional trading hours, from 1 p.m. to 2:30 p.m. but the expected inflows of investment did not materialize. Less than a year after its pilot implementation, the PSE reverted to the 2 1/2 hour-trading schedule.

Is the Philippines ready for longer trading hours?

We are willing to give it a try but if the costs of rolling out this plan would outweigh the expected benefits, then probably it’s time to go back to the drawing board. Inputs from stockbrokers and the stock traders themselves must be considered.

What do you think? Are you ok with this proposal? Post a comment below.

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8 thoughts on “Extended PSE stock trading hours”

  1. This proposal is a welcome development. This will give more chances for stock traders like me. Stock trading or investing is one of the ways to make massive passive income, and one of the topics during the Money Summit and Wealth Expo 2011 in Manila and Cebu, the largest money making conference. Click here for more info: http://bit.ly/MoneySummitCebu2011

    Reply
    • On the flip side of the coin, extending trading hours will mean additional operating costs for brokerage firms since backroom employees begin their work only after the market is closed. Initially the one hour extension will not have a big effect- cost wise but the proposed or approved 1:30 to 3:30 afternoon session of the market come January 1 of the following year will have significant effect. I guess we will be counting on the foreseen increase in trade volume/value due to longer trading hours. In that case I’ll keep my fingers crossed. However, when they extended trading hours 8 or 9 years ago ( we had afternoon session from 1:30 to 2:30 )  there wasn’t any significant increase in traded volume. Although one might argue that market conditions are very different then and now.

      Reply
    • On the flip side of the coin, extending trading hours will mean additional operating costs for brokerage firms since backroom employees begin their work only after the market is closed. Initially the one hour extension will not have a big effect- cost wise but the proposed or approved 1:30 to 3:30 afternoon session of the market come January 1 of the following year will have significant effect. I guess we will be counting on the foreseen increase in trade volume/value due to longer trading hours. In that case I’ll keep my fingers crossed. However, when they extended trading hours 8 or 9 years ago ( we had afternoon session from 1:30 to 2:30 )  there wasn’t any significant increase in traded volume. Although one might argue that market conditions are very different then and now.

      Reply
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