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, be sure to first browse our easy-to-understand PinoyMoneyTalk’s PSE Stock Trading Guide.
If you don’t have much time to read, here’s a brief overview of everything you need to know about trading stocks in the Philippine Stock Exchange (PSE), including when the PSE is open and in which times you can do stock trading.
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 when distributed by the company. (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 they have multiple exchanges, the Philippines only has one stock market — the PSE.
What products are available in 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. Of course, you only make money when you sell the stock at a price higher than the price you bought it. This is the reason why the basic stock trading mantra is “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 market price.
What’s the minimum amount needed to invest in stocks?
Every stock trading transaction is governed by the Board Lot. This means the minimum amount of money needed to start trading stocks will actually depend on the stock you wish to buy and its price.
The PSE Board Lot shows the minimum number of shares that you can buy or sell at any time. The cost of the minimum amount of shares you’ll buy represent your minimum investment in stocks. However, in order to trade using a broker, some brokers require a certain deposit amount before you can open an account with them.
Check out sample computations of how much money you need to begin trading stocks in our article How to Use the PSE Board Lot Table.
PSE Stock Trading Hours in 2022
What time is the Philippine Stock Exchange (PSE) open? In 2022, stock trading in the Philippines officially opens at 9:30 AM and ends at 3:00 PM.
Beginning December 6, 2021, the PSE went back to its full-day trading hours that has been implemented prior to the COVID-19 pandemic. From March 16, 2020 until December 3, 2021, the trading day in the PSE was just a short 3 1/2 hours, from 9:30 AM until 1:00 PM. because of the pandemic.
The full PSE stock trading schedule in 2022 is as follows.
| PSE Trading Hours in 2022 | Stock Trading Activity |
|---|---|
| 9:00 AM | Pre-Open |
| 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 |
| 2:45 PM | Pre-Close |
| 2:48 PM | Pre-Close No-Cancel |
| 3:00 PM | Market Close (End of Trading) |
What does it mean by Pre-Open, Market Recess, or Market Run-off in the PSE? 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 in 2020 and 2021
As mentioned earlier, stock trading in the PSE in 2020 was shortened from 9:30 AM to 1:00 PM due to the COVID-19 pandemic. This means total trading hours in the Philippines then were just 3 and 1/2 hours in a day.
This rule was adopted from March 16, 2020, the first day the entire country 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 | PSE Activity |
|---|---|
| 9:00 AM | Pre-Open |
| 9:30 AM | Market Open |
| 9:31 AM - 12:44 PM | Continuous Trading |
| 12:45 PM | Pre-Close |
| 12:50 PM | Run-off / Trading-at-Last |
| 1:00 PM | Market Close |
PSE Trading Hours before COVID Pandemic
In contrast, from 2012 until before the COVID-19 lockdowns, stock trading was open from 9:00 AM until 3:30 PM.
Specifically from January 2, 2012 until March 13, 2020, PSE trading hours were as follows.
| PSE Trading Hours before COVID | PSE 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
Stock trading in the PSE before 2012 were 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 had a trial run from October 2011 to December 2011 of its extended trading hours from 9:30 a.m. until 1 p.m. They eventually implemented a 9:00 AM to 3:30 PM trading schedule from 2012 until 2020.
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Make sure to understand the risks involved and seek the advice of a financial professional if you are unsure about any aspect of stock trading.
It’s possible that the PSE will continue to follow this schedule in 2022, but any changes or updates to the trading hours will be announced by the PSE through official channels, such as their website or press releases.
If you are uncertain about any facet of the stock trading process, it is important to make sure you fully comprehend the dangers involved and to seek the guidance of a qualified financial expert.