Traders expect market freefall as PSE reopens

MANILA, Philippines — Traders expect the stock market to go into free fall when it reopens today  after a two-day coronavirus-induced shut down that fueled more panic among investors.

The Philippine Stock Exchange (PSE) is already considering a longer circuit breaker mechanism to avert a potential crash, sources told The STAR.

However, PSE officials said no extra mechanism has yet been set as they appealed to investors to maximize the opportunity to hunt for some bargains.

“We have no assurance but we take comfort knowing that the two government pension funds are in the market, rightly believing that at current prices and with PE multiples at their lowest level, it’s time to buy!,” PSE chairman and former finance secretary Jose Pardo told The STAR yesterday.

He welcomed Finance Secretary Carlos Dominguez’s directive for the Government Service Insurance System and Social Security System to help prop up the market.

The PSE will continue to observe shortened trading to 1 p.m. from 3:20 previously.

Trading activities by all trading participants will have to be conducted remotely through offsite locations,” the PSE said.

However, some brokerage houses such as those without business continuity plans may not be able to open today, sources said.

The PSE was the first stock market in the world to close because of COVID-19.