Stock market, banks closed yesterday

MANILA, Philippines - Due to Typhoon Maring, some banks yesterday decided to suspend some of its operations in areas affected by the flood.

China Banking Corp., Security Banking Corp. and BDO Unibank Inc., in their respective advisory sent to media, said they were forced to stop temporarily their banking operations in affected areas.

China Bank vice president Alex Escusha said all their branches within Metro Manila including their head office have been closed due to the typhoon.

Security Bank, on the other hand, said the operations of their branches in Metro Manila and some areas in Luzon affected by floods were also suspended.

“Customers from affected areas can still access their accounts thru ATMs and the eBanking facility,” Security Bank advisory said.

BDO, meanwhile, said all branches in the National Capital Region and other affected areas in nearby Luzon, including Rizal, and parts of Cavite, Bulacan and Laguna were closed due to the typhoon.

The country’s largest bank owned by retail magnate Henry Sy  Sr., however, said all other branches nationwide were still open for business.

Trading at the Philippine Stock Exchange (PSE) did not push through yesterday as heavy rains resulted in the suspension of several banking operations like the country’s central payments and clearing system.

In a statement, PSE chief operating officer Roel Refran said there was no trading at the PSE “and no clearing and settlement at the Securities Clearing Corp. Philippines (SCCP).”

SCCP is a private firm organized primarily as a clearance and settlement agency for depository eligible trades executed in the local stock exchange. As a securities depository, the company can hold securities for all financial institutions in the local bourse prior to the certificates being transferred to the owner or to another party.

It can also process the settlement of share transactions.

The trading suspension resulted from “the suspension of clearing and settlement operations in the Philippine Banking System,” Refran said.

Tropical storm Maring and the southwest monsoon dumped heavy rains over Mega Manila, disrupting several banking operations.

Given yesterday’s suspension, operations of the local bourse for this week was cut anew. Financial markets will be closed on Aug. 21 due to the Benigno “Ninoy” Aquino Jr. Day. Week-on-week, the benchmark PSE index rose 1.9 percent or 121.72 points to 6,525.95, snapping a two-week decline due to bargain hunting amid strong first half corporate earnings.

On Aug. 7, 2012, the PSE also suspended trading because of torrential rains that caused heavy flooding, displacing thousands and killing more than 100 people.