With stocks on a freefall across the global, the Philippine Stock Exchange amended its trading rules to temper the daily decline of local stock prices.
In a memorandum dated March 21, PSE president Ramon Monzon said the exchange obtained approval from the Securities and Exchange Commission to amend the lower static threshold from 50 to 30 percent below the previous close or the last adjusted closing price, whichever is applicable. A stock could previously go down by as much as 50 percent from the previous day’s closing rate, but the new rule now limits the decline to 30 percent. The new rule takes effect on Tuesday, March 24.
Monzon said they were “looking at measures to address the present volatility in the stock market due to uncertainties from COVID-19.”
He added that the PSE “benchmarked the adjusted lower static threshold level with what other exchanges in the region currently implement, which is between 10 and 30 percent.”