The Market Monitor Minding the Nation's Business
By Riza Lozada
The Philippine Stock Exchange Inc. (PSE) said it would rather have no extended holidays during the Asia-Pacific Economic Cooperation (Apec) forum that the country will host next month, since the long layoff may affect the current uptrend in the bourse.
PSE President and CEO Hans Sicat said in an effort to sustain the momentum of the stock market, in which the index recently returned to the 7,000 mark, asked the Bangko Sentral ng Pilipinas (BSP) to allow the markets to operate during the four-day declared work holidays. Specifically, the PSE has asked the BSP to make financial clearing and settlement operations among the services available to the public on November 17 and 20, 2015.
The Palace has issued Memorandum Circular No. 84 declaring that, upon the recommendation of the Apec-Office of the Director General, the Department of Labor and Employment, and the Department of Trade and Industry, work in government offices will be suspended on November 17 to 20 in view of the activities related to the Philippines’ hosting of the Apec Summit.
The private sector has the option to comply with the suspension of work on a voluntary basis “based on their respective assessment of scheduled activities from 16-20 November 2015, and the traffic management plan which shall be implemented on the said dates,” said the circular.
The PSE noted that the government work suspension in NCR includes the suspension of the operations in the Philippine Payments and Settlements System (PhilPaSS) of the BSP which settles transactions of financial institutions. Philpass transactions include interbank, check clearing, Megalink, BancNet, government seurity trades—secondary, bank (HO) withdrawals, RRP Placements, RP/RRP/SDA Maturities, E-rediscounting, Bank (HO) Deposits, GS trades—tertiary, SES supervisory fees, Interbank Repo, Intraday Liquidity Facility, OF Remittances, Checkless Payment (BSP-HO), Checkless Payment (BSP-SPC), FX Loan App Fees, and Bank Reg Withdrawals.Normal check clearing operations in the Philippine Clearing House Corporation are also dependent on the PhilPaSS being available.
“The Philippines is referred to as the bright spot in (Southeast Asia) and the country is at the center of economic activity in the region. I think stakeholders, including the investing public, fund managers even the banks would greatly appreciate it if the markets are not closed for four straight days,” Sicat said.Malacanang also declared November 18 and 19 as special non-working days in the National Capital Region (NCR) in line with the Apec Economic Leaders’ Meeting.