Excited to begin trading? Before you do, make sure you first understand how the Philippine Stock Exchange (PSE) operates.
Unlike other investments that are relatively safe, stock trading is risky which means loss of money is a possibility. So before you deep dive into the exciting world of stock trading, be sure to browse our easy-to-understand PinoyMoneyTalk’s PSE Stock Trading Guide.
Here’s a brief overview of important things you need to know about trading stocks in the Philippine Stock Exchange (PSE), including when the PSE is open and the trading hours when you can buy or sell stocks.
What are stocks?
Shares of stocks represent ownership in a company. As stockholder, you are a part-owner of a company. As part-owner, you acquire several rights of shareholders, including the right to vote and the right to receive dividends. (See also: All about Dividends in Stock Investing)
What is the PSE?
The Philippine Stock Exchange or the PSE is the only stock exchange in the Philippines. Unlike other countries (such as the U.S., Japan, Canada, U.K., etc.) where there are multiple exchanges, the Philippines only has one stock market where investors can buy or sell stocks — the PSE.
How do I make money in stocks?
As a stock investor, you can make money through one or all of these ways:
1. Capital appreciation – the change in price from the time you bought the stock to the time you will sell it. You only make money, of course, when you sell the stock at a price higher than the price when you bought it. This is the rationale behind the basic trading mantra of “Buy low, sell high”.
2. Dividends – this is your share in the earnings of the company which may be distributed to shareholders in the form of cash or stock dividends; and
3. Stock Rights – the right given to you as a shareholder to buy additional shares of the company at a lower price compared to the current market price. With stock rights, you can buy new shares at a lower price which you can then flip by selling in the open market, giving you instant profits.
In other stock markets, short selling is another way to make money. As of this writing, however, short selling (or shorting) of stocks in the Philippine Stock Exchange is still not implemented. The exchange has previously announced it will soon launch this feature, but until now, this remains a mere plan.
How much money needed to start trading stocks?
The minimum amount you need before you can buy stocks actually depends on the stock you wish to buy and its current market price. The PSE Board Lot is the reference table that you can use to determine how much money you need.
(Still, do note that you need a broker to be able to trade stocks and brokers require a certain amount before you can open an account with them. This could be higher than the actual amount you need to be able to buy stocks.)
How much exactly does it cost to buy stocks in the PSE? Check out sample computations of the cost of stock trading transactions in the article How to Use the PSE Board Lot Table.
PSE Stock Trading Hours
You’re ready to begin trading. At this point, you probably want to know:
What time is the Philippine Stock Exchange (PSE) open? From what time to what time can I buy and sell stocks?
Stock trading in the PSE officially opens at 9:30 AM and ends at 3:00 PM.
The full PSE stock trading schedule is as follows.
|PSE Trading Hours||Trading Activity|
|9:15 AM||Pre-Open No-Cancel|
|9:30 AM||Market Open (Start of Continuous PSE Trading)|
|12:00 NN||Market Recess|
|1:00 PM||Resumption of Trading|
|2:48 PM||Pre-Close No-Cancel|
|3:00 PM||Market Close (End of Trading)|
Beginning December 6, 2021, the PSE went back to its full-day trading hours that has long been implemented prior to the COVID-19 pandemic.
At the height of the pandemic, specifically from March 16, 2020 until December 3, 2021, trading in the PSE was shortened to just 3 1/2 hours, from 9:30 AM until 1:00 PM. Since 2021, however, trading in the PSE has been extended until 3:00 PM.
Pre-Open, Continuous Trading, Market Run-off?
What does it mean by Pre-Open, Continuous Trading, or Market Run-off in the PSE trading schedule? Here’s a short description of these stock market activities.
Pre-Open (9:00 AM – 9:29 AM). Stock trading orders can already be entered with your stock brokerage account but no matching of trades will occur yet.
Market Open (9:30 AM). Official start of order matching and stock trading in the PSE.
Continuous Trading (9:31 AM – 11:59 AM). Regular stock trading hours where orders are continuously accepted, processed, and matched by the PSE.
Market Recess (12:00 PM – 12:59 PM). Market is closed for one (1) hour, with no ordering and matching allowed.
Trading Resumption (1:00 PM). Trading officially resumes after the 1-hour market recess.
Continuous Trading (1:00 PM – 2:44 PM). Regular stock trading hours where orders are continuously accepted, processed, and matched by the PSE.
Pre-Close (2:45 PM – 2:49 PM). Stock closing prices are set and posted orders cannot anymore be cancelled or modified.
Market Run-off (2:50 PM – 2:59 PM). Remaining orders are matched at a fixed price determined during the Market Pre-Close.
Market Close (3:00 PM). Market is closed with no stock trading. Order matching is also not occurring, but some brokers may accept after-hour orders to be processed during the next trading day.
PSE Trading Hours during COVID-19 Pandemic
As mentioned earlier, stock trading in the PSE during the COVID-19 pandemic in 2020 and 2021 was shortened from 9:30 AM to 1:00 PM. This means total trading hours then were just 3 and 1/2 hours in a day.
This rule was adopted from March 16, 2020, the first day the Philippines was placed in lockdown or enhanced community quarantine (ECQ), until December 3, 2021.
During the COVID-19 pandemic, the stock trading schedule was as follows.
|PSE Trading Hours during COVID||Trading Activity|
|9:30 AM||Market Open|
|9:31 AM - 12:44 PM||Continuous Trading|
|12:50 PM||Run-off / Trading-at-Last|
|1:00 PM||Market Close|
PSE Trading Hours before Pandemic
In contrast, from 2012 until right before the first COVID-19 lockdown in 2020, stock trading in the PSE started at 9:00 AM and lasted until 3:30 PM.
Specifically from January 2, 2012 until March 13, 2020, PSE trading hours were as follows.
|PSE Trading Hours before COVID||Trading Activity|
|9:00 - 9:29 AM||Pre-Open|
|9:30 AM||Market Open|
|9:31 AM - 11:59 AM||Continuous Trading|
|12:00 NN - 1:29 PM||Market Recess|
|1:31 PM - 3:16 PM||Continuous Trading|
|3:17 PM - 3:19 PM||Pre-Close|
|3:20 PM - 3:29 PM||Run-off / Trading-at-Last|
|3:30 PM - 8:59 AM The Next Day||Market Close|
PSE Trading Hours Before 2012
Prior to 2012, stock trading in the PSE was for a mere 2 and 1/2 hours, from 9:30 a.m. until 12:10 p.m.
In a bid to adopt longer trading hours, the PSE conducted a two-month trial run of extended trading hours (9:30 AM to 1:00 PM) from October 2011 to December 2011. After this trial run, the PSE decided to adopt a longer trading schedule and the new trading hours — from 9:00 AM until 3:30 PM — were implemented beginning January 2012 and lasted until March 2020.
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