Philippines first country to suspend all markets as coronavirus spreads

Wednesday, 18 March 2020 00:47 - - {{hitsCtrl.values.hits}}

A man wearing a protective mask sits outside the Philippine Stock Exchange at the central business district as the government implements an "enhanced community quarantine" in the country’s main island Luzon to contain the coronavirus, in Makati City, Metro Manila, Philippines - Reuters

Manila/Singapore (Reuters): The Philippine Stock Exchange closed indefinitely on Tuesday while currency and bond trading were suspended, the first shutdown of markets worldwide in response to the coronavirus, with authorities citing risks to the safety of traders.

The move comes after some bourses around the world closed trading floors or paused trade after big falls in market value.

It is also open-ended, unlike China’s extension of Lunar New Year holidays in January, which delayed the resumption of trade, or the run of holidays declared in Sri Lanka this week to try and halt the virus, which has closed markets there since Monday.

And while the Philippine shutdown was prompted by health reasons, amid a broad nationwide lockdown, it raises the prospect other exchanges may follow.

Global markets are in meltdown as the pandemic spreads, with roughly $14 trillion in shareholder value erased and even safe assets such as gold have been sold to cover losses.

The Philippine Stock Exchange said trade was suspended until further notice “to ensure the safety of employees and traders,” amid a broader national lockdown.