PSE okays electronic release of corporate disclosures

Instead of waiting for the next trading day, the Philippine Stock Exchange (PSE) will make available to the public all corporate disclosures and announcements received even after trading hours in the morning. This is to keep investors abreast of late breaking news or information within the day.

In a circular to brokers, PSE president Ernest Leung said the PSE board has approved the policy on the electronic release of corporate disclosures and announcements after trading hours, part of the exchange’s efforts to make available corporate information to the trading participants as well as the investing public in a timely and efficient manner.

"The release of corporate announcements after trading hours would enable the public to be informed of any corporate developments in the afternoon, thus having more time to fully appreciate and digest the announcement," Leung said.

Under the current set-up, the exchange only posts and distributes disclosures and announcements made during trading hours which runs from 9 a.m. to 12 noon. Any corporate news or material received thereafter are released the following trading day which, in effect, could give some knowledgeable investors or those privy to the information enough headway to take early positions the next day.

There have been several instances in the past wherein companies were made to explain for the sudden and unusual movement of their stock prices, in some cases leading to allegations of insider trading, due to disclosures made for events that have transpired at least a day before.

However, only online investors can be able to gain access to the new disclosures and announcements since the exchange will be uploading these to its website (pse.com.ph) beginning one hour after market close until 4 p.m. of the same day.

To compensate for the lack of Internet access, the PSE will offer subscription to a fascimile service to be provided by the PSE administration department, wherein clients will be charged P2 per page sent.

Leung said by the time the online disclosure system gets underway on March 3, the exchange will no longer release hard or paper copies of any of its announcements as well as corporate disclosures, except in cases when the online system is temporarily unavailable. In such cases, the old rule will apply wherein no disclosure or announcement shall be released after trading hours.

Aside from the PSE website, the trading participants gain instant access to PSE data and information through the automated trading terminals provided to each broker at the bourse.