By PNA and U.S. News Agency / Asian

The Board of Directors of the Philippine Stock Exchange, Inc. (PSE) approved new trading hours in its meeting held on Wednesday.

The extension of trading hours will be implemented in two phases.

Effective Oct. 1, 2011, trading session runs at 9:30 a.m. and ends at 1 p.m.

By January next year, afternoon trading will run from 1:30 p.m. to 3:30 p.m. Opening of the trading session remains at 9:30 a.m.

“This move will align the PSE with its peers in the region and is a positive signal that the local market is ready to take off. Afternoon trading is also expected to boost liquidity as it enhances the ability of investors to react to developments in other markets in a different time zone,” PSE president and chief executive Hans B. Sicat said.

Value turnover year-to-date averages P5.30 billion daily. The PSE index, or PSEi, reached a new all time high last July 5 at 4,439.61.

“We are cognizant of the benefits of extended trading, and we are also well aware of the challenges that it provides,” Sicat said.

“We are optimistic that with the initiatives we have put in place prior to this move such as a new trading system, introduction of new products to boost volume, regulatory approvals, and more listings and follow-ons, we will be able to enhance investor interest in the stock market,” he said.

“This initiative requires the help and participation of all stakeholders and we are grateful for the active support of the trading participants,” Sicat said.

Currently, trading in the PSE is a continuous session from 9:30 a.m. to 12:10 p.m. daily.