The longer trading hours that the Philippine Stock Exchange proposed before will go on as planned effective January 2, 2012.
In the new schedule, there will be 2 and 1/2 hours of trading in the morning, followed by 1 and 1/2 hours of recess, then another 2 hours of trading in the afternoon. Trading will now end at 3:30 p.m.
The new schedule is as follows.
For three months starting October 2011, the PSE pilot-tested the extension of trading hours. From October 1 until the last trading day in December, an additional trading hour was implemented, with the market opening at 9:30 a.m. and closing at 1 p.m.
Although a few traders I know complained that they delayed their lunched because of the additional hour, it seems like the pilot-testing was successful, hence, the PSE decided to give the 4 and 1/2 hours total trading time a go by next year.
Before October 2011, trading time in the local stock market was only for 2 and 1/2 hours, one of the shortest in the world.
In 2002, the PSE extended trading hours until 2 in the afternoon but discontinued the move after only eight months of pilot-testing. The expected increase in the volume of trades did not materialize supposedly because the extended hours coincided with the mid-day trading breaks in other foreign markets.
Here’s to hoping that next year’s longer trading hours will lead to more investors and more trades in the local stock market.