THE Philippine Stock Exchange (PSE) has secured the approval ofthe Securities and Exchange Commission to reduce the lower static threshold of individual stock prices from 50 percent to 30 percent from its previous closing price.
“We are looking at measures to address the present volatility in the stock market due to uncertainties from Covid-19. One of the measures we decided to adopt is to tighten the trading band for securities,” PSE president and chief executive officer Ramon Monzon said.
“We benchmarked the adjusted lower static threshold level with what other exchanges in the region currently implement, which is between 10 and 30 percent,” Monzon explained.
The adjusted lower static threshold took effect on Tuesday, March 24, 2020.
“We already configured our trading system to recognize a 30 percent decline in share price as the floor price of a security,” Monzon added.
The upper static threshold of securities will remain at 50 percent. (PR)