Question

What are the mitigations conducted by the Philippine institutions to lessen the impact of this pandemic in the segment of equities in the secondary market?

Answer 1

To answer this question,we first have to understand what is a secondry market.

A secondry market is a place where the investors buy and sell securities from other investors.The best example of this is a Stock exchange like NSE. For example if an investor wants to buy shares of reliance,he will purchase it from the investor who has its shares already,Reliance will not be involved in this transaction.

As per the question, in the case of Philippines, Adequate information, disclosure practises are helping now in terms of better risk management and consolidated supervision. These measures have contributed to the limited impact of the crisis on Philippines financial markets.

The philippine stock exchange was closed indefinitely,while currency and bond trading were suspended,as a measure taken byb the authorities citing risk to the safety of the traders.

The move comes after some bourses around the world closed trading floors or paused trade after whitering falls in the market value. It is the first BLANKET MARKET HAULT.

Opinions are divided,though,on whether the suspension of stock market that includes many giants,can actually support sentiment?

Some experts like Renzo Louie Candano said " It would give investors time to evaluate whether the self-off is warranted"

On the other hand Ken Peng,head of Asia Investment Strategy at Citi Private Bank said " With the markets closed it would be puzzeling for the investors that how additional government bonds would be issued or recievd by markets"