PSE suspends trading

MANILA, Philippines - The Philippine Stock Exchange (PSE) suspended trading for the second time this year yesterday following heavy rains and flooding brought by Tropical Storm Mario (international name: Fung-wong).

In a public advisory, the operator of the local bourse said it deferred stock trading as well as transactions at the Securities Clearing and Corp. Philippines (SCCP) “due to the suspension of clearing and settlement operations in the Philippine banking system.”

It was only the second time the PSE suspended trading in 2014, with the first caused by Typhoon Glenda (international name: Rammasun) last July 16.

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.

Aside from Metro Manila several areas in Luzon were placed under storm alert as Mario intensified yesterday morning.