MANILA, Philippines — The Philippine Stock Exchange will reopen tomorrow after being the first financial market in the world to close amid the growing coronavirus disease 2019 or COVID-19 outbreak.
PSE director Vivian Yuchengco told The STAR that the Securities and Exchange Commission (SEC) has agreed to exempt the capital markets from the enhanced community quarantine.
This means the PSE, the Philippine Dealing and Exchange Corp. and the Bangko Sentral ng Pilipinas (BSP) can continue to operate.
“We asked for an exemption and we feel that the economic managers will back us,” Yuchengco said.
She said while stock trading could be done online, the settlement must be done onsite.
“Can you imagine if we are shut down for 26 days? The PSE will die,” Yuchengco said.
Traders criticized the PSE’s controversial move to shut down the market as it sent a wrong signal and fueled panic among investors.
“It’s a bad move because people will only panic even more. They don’t want funds to be constrained,” one trader said.
The PSE initially shortened trading hours to 1 p.m. from 3:20 p.m. On Monday, however, the bourse announced a total shutdown effective yesterday after the government announced an enhanced community quarantine.
“We continue to enjoin everyone to take the necessary precautionary measures to help stem the spread of COVID-19,” Monzon said in a memorandum.
Meanwhile, the Securities and Exchange Commission (SEC) closed its main office in Pasay City as well as its extension and satellite offices located in Luzon until further notice.
The SEC, instead, has implemented work-from-home arrangements.
“To ensure ease of doing business and facilitate compliance with existing and applicable rules and regulations in this time of emergency, the SEC has implemented work-from-home arrangements,” the SEC also said.
The SEC has also adopted measures to help affected companies and other stakeholders cope with the impact of COVID-19.
It has extended the filing period for annual reports and/or annual financial statements and allowed companies to submit their reports through courier. It also enabled the participation of directors, trustees, stockholders, members and other persons in meetings through remote communication.