In a letter to the PSE’s Floor Trading and Arbitration Committee chairman Eddie T. Gobing, seven of the biggest foreign brokerage houses said that they supported the plan to extend stock market trading to the afternoon.
However, the foreign brokers said the proposed 1 to 2 p.m. time slot would miss the opening of trade at European stock exchanges.
"Capturing the European investor live will be most effective if the afternoon session will instead be open from 2 p.m. to 4 p.m. which translated to 6 to 8 a.m. London time," the brokers said.
According to the foreign brokers, most European investors deal live in Asia by working at that time to catch the major Asian markets which are still open at the same time across the other side of the globe.
At that time slot, the brokers said European investors deal live with Hong Kong, Singapore, Taiwan, Korea, Thailand and Indonesia.
"We feel that this is the most efficient time slot and should translate to maximum participation from European investors for an extra two hours trading," they said.
"This, coupled with more trading activity from local and Asian investors, should help the exchange attain its goal of enhancing trading volumes," they added.
The letter was signed by George Kilayko of ABN-AMRO Asia Securities (Phils.) Inc.; Raymond M. Tempongko of CLSA Philippines Inc.; Cesar Luis F. Bate of ING Baring Securities (Phils.), Robrina Go of UBS Warburg Securities, Condrado Bate of J.P. Morgan Securities Phils.; Joseph Madrid of Philippine Equity Partners Inc.; and Emmanuel Bautista of Regis Partners Inc.
The PSE board of governors is scheduled to meet tomorrow to discuss the proposal and make a decision on whether or not the exchange will extend its trading hours.
At present, trading at the PSE opens at 9 a.m. and ends at noon. Brokers have been clamoring for an extension of the trading hours in order to capture the segment of the investing public that have been inaccessible thus far because the market closed early.
The extension of the PSE's trading hours was expected to attract more investors and provide much needed fresh liquidity that could give enough base to make the current upswing more sustainable.