Stuck in the trading doldrums and one of the worst-performing markets in Asia in 2001, Manila’s main index has shot up over 21 percent so far this year to be among the region’s top performers.
Starting tomorrow, the Philippine Stock Exchange (PSE) will add the 90 minute afternoon session, following requests from brokerages to give participants more opportunities to trade.
Yesterday P870 million pesos ($17 million) in stocks were traded on the PSE, up from around 350 million pesos a day at the beginning of the year, and traders said they would rather be busy than maintain their half-day lifestyle.
"We’re so fat. We are gaining weight because of our long lunches. From now, short lunches and no more playing golf," said Astro del Castillo, director of the Association of Securities Analysts of the Philippines.
The PSE ended afternoon trading in 1976 when the paper-based clearing system then in use could not keep up with trading.
It is one of only a handful of markets, along with Iran, Slovenia and Taiwan, that trade for only half a day.
Currently the session runs from 9:30 a.m. until noon. From Feb. 20, trading will resume at one p.m. after an hour’s lunchbreak and go through to 2:30 p.m.
Last year many brokers spent afternoons training for new jobs or finding ways to make ends meet as the country’s share market, hit by political crisis and security concerns, suffered sliding trading volume and foreign brokerages closed left and right.
The dramatic rise in PSE trading volumes this year has been driven by a good economic performance and better prospects ahead.
Market participants have also become more optimistic that the Philippines will resolve peace and order problems.
"Other than affecting your lunch and lifestyle, it’s a welcome relief,"said Enrique Santa Ana, associate director of sales at DBS Vickers Philippines, said of the market recovery.
The PSE was computerized in the early 1990s but backroom offices were still not ready to take on extra paperwork. Unsuccessful attempts were made to extend hours in 1997 and 1998.
Some foreign brokerages had been pushing to extend trading until 4 p.m. (0800 GMT) to enable the market to take advantage of early trading in Europe but the PSE said running the session for that long would require adjustments to the trading system and could result in higher operating costs.
"It’s not that we don’t want to extend it. I think it’s basically because we are just going to start after so many many years of no afternoon trading, so we just want to give time to all the brokers to get their back room adjusted," PSE board member Harry Liu told television.