The Philippines first to shut down financial markets
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The Philippines first to shut down financial markets 18 March 2020Manila Reporter: Natalie Turner
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The Philippine Stock Exchange (PSE) has this week closed its $188 billion financial markets until further notice in response to the widening coronavirus pandemic.
The PSE ceased trading activity across its equity, currency and bond markets on Tuesday morning 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.
Philippine equities have fallen more than 30 percent this year, which is among the biggest declines in Asia, as stocks around the world plunged amid fears of global recession due to the on-going coronavirus-fueled market sell off.
The exchange has advised that there will be no trading until further notice to ensure the safety of their employees and traders due to the escalating COVID-19 outbreak.
The official count puts the number of infected in the Philippines at 202, as of Tuesday, with 17 deaths.
The Asian markets closures come amid a torrid period for global markets that have caused widespread losses not seen since the 2008 finance crisis.
In Europe, the Italian main index (the FTSE MIB) fell from 20,799 to 14,894 between 6-12 March, representing an overall decrease of 28.39 percent.
Meanwhile, the French main index (the CAC 40) decreased by 27.2 percent between 2-16 March.
Despite this, the Federation of European Securities Exchanges (FESE), which represents EU trading venues, today vowed that its members would keep their doors open.
Regulated stock markets play a key role in social and economic functions, these functions have been put to the test in the past, for example during the financial crisis - when other sources of liquidity dried - despite this the exchange markets remained operational, the FESE explains in a statement.
Moreover, the association warns that closing markets would remove transparency of investor sentiment and reduce investors' access to their money; all of which would compound current market anxiety and result in a negative decline in investor outcomes.
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