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.

About the Author

PSEi support seen at 6,200 and 6,000 amid weaker Peso

In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks

When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more
blank

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)

Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more
blank

Why Filipinos do not become business owners or entrepreneurs

For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more
blank

My experience investing in Mutual Funds in the Philippines

I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more
blank

Income Tax Tables in the Philippines (2022)

The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more
blank

PSE Stocks Performance under each Philippine President (1987-2021)

Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more
blank

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees

Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more
blank

PSE Trading Hours in 2022: What time open, when closed?

Before you take the plunge into stock trading and investing, make sure you understand what stocks are and how the Philippine Stock Exchange (PSE) operates. Unlike other investments that are relatively safe, stock trading is risky and loss of money is a possibility. So before you deep dive into the exciting world of stock trading, ... Read more

Price Floor and Price Ceiling of PSE Stocks

Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.

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
  2. I really like what you might have acquired here, really like what you might be stating and exactly that you just say it. You’re making it enjoyable however, you just take care of to stop it smart. I can’t wait to find out much more by you.

    Reply

Leave a Comment