Philippines record plunge shows risks of shuttering stock market

The Philippine Stock Exchange said on Thursday the bourse is considering revising the circuit-breaker rule as a temporary measure to address market volatility

Philippine stocks’ record 13.3 per cent slump following an unusual two-day shutdown signals the risks associated with controversial moves to halt trading.

The Philippine Stock Exchange Index plunged as much as 24 per cent in Manila before closing at the lowest level since January 2012, bringing its valuation to the lowest level in 11 years. The declines came ahead of the central bank’s decision to cut its key rate by 50 basis points and amid concerns that a 27 billion peso ($528 million) fiscal stimulus won’t be enough to tackle the spread of the coronavirus.

“The two-day shutdown closed the doors to