Philippines is first country to shut financial markets over virus

Last updated on May 11th, 2021 at 09:15 am

The Philippine stock exchange chief said he plans to reopen the $188 billion market on Thursday, signaling a quick resumption of trading after the country became the first to shut financial markets in response to the widening coronavirus pandemic.

The controversial move to halt trading came amid mounting speculation that other countries may take similar measures as stocks around the world plunge on fears of a global recession. While Sri Lanka joined the Philippines in shutting its bourse, markets including the New York Stock Exchange have issued statements this week saying they plan to stay open. The Philippine closure took effect Tuesday, following President Rodrigo Duterte’s decision on Monday to widen a month-long lockdown of the capital region to cover the country’s main Luzon island, home to at least 57 million people. The bourse is targeting to reopen on Thursday, Ramon Monzon, the Philippine Stock Exchange’s chief executive officer said in an interview on Bloomberg TV.

Philippine equities have tumbled more than 30% this year, among the biggest declines in Asia. A US-listed exchange-traded fund that tracks the Philippine market sank by a record 19.5% on Monday after the bourse announced it was shutting. “This restricts exit the mechanism so it won’t be taken kindly by investors who don’t like their flow of funds constrained,” said Manny Cruz, strategist at Papa Securities. “What the market would do when trading resumes depends on the state of global markets. We will see a sharp selloff if the global weakness continues and a sharp rebound should there be a recovery worldwide.” Shutting markets during times of crisis is extremely rare but not without precedent. America’s stock market closed for almost a week after the 9/11 terrorist attacks in 2001, while Hong Kong halted trading in the wake of the Black Monday crash in 1987. Greece shut its stock market for about five weeks in 2015.

While some commentators have argued that countries including the US should consider temporary market closures, exchanges and regulators have mostly downplayed or rejected the idea. Bourses in Korea and Indonesia said they have no plans to shut trading, while Australia’s exchange said it and market regulators “have a range of measures, some of which have already been taken, to maintain the market’s orderliness and resilience.”

Desk Writer

Spends most of the time reading news all around the world. Strong knowledge and understanding of the current situation and happenings in the ASEAN region.

Recent Posts

V Surprises ARMY with Two Holiday Releases: A Festive Collab with Park Hyo-shin and “White Christmas” Cover

For K-pop fans, the Christmas season this year has become even more magical as several of their preferred stars reveal…

November 22, 2024

Celine Names TWS as Global Ambassadors Following Suzy Bae Announcement

After Suzy Bae's nomination as Celine's worldwide ambassador, the venerable French luxury fashion company has taken another bold step choosing…

November 22, 2024

Reddit Faces Widespread Outage, Users Turn to Workarounds Amid ‘Server Error’ Messages

Thousands of users of the well-known social network Reddit were left without access after a major outage of the website.…

November 22, 2024

Anne Hathaway Casted as ‘Verity’ in Colleen Hoover’s Book Adaptation

Anne Hathaway is slated to play the much expected film version of Colleen Hoover's best-selling book Verity in front of…

November 21, 2024

Gucci Set to Revolutionize Fashion Presentations with Unified Shows in 2025 under Sabato De Sarno’s Vision

Gucci is ready to change its presentation approach for 2025 in a radical action aimed to revolutionize the fashion industry.…

November 21, 2024

South Korea’s “Korea Discount”: Addressing the Governance Gap to Boost Market Value

As world investors wait for significant changes that might solve long-standing problems of governance and responsibility in South Korea's companies,…

November 21, 2024

This website uses cookies.

Read More