Stormy weather shuts PHL clearing operations, financial markets

Philippine financial markets are closed on Tuesday, as the country braces for Tropical Depression Maring—prompting the Bangko Sentral ng Pilipinas to suspended clearing operations.

Maring is expected to make landfall in Mauban, Quezon on Tuesday morning.

The weather bureau issued orange and yellow rainfall warnings as the cyclone started crossing the main island of Luzon.

The central bank said clearing operations were suspended since Malacañang announced that government offices in Metro Manila will be closed.

"Under BSP guidelines, clearing operations are suspended if work suspension is announced before 9 a.m.," the central bank said.

Trading on both the Philippine Stock Exchange (PSE) and the Philippine Dealing System (PDS) were also suspended.

"Please be advised that there will be no trading at the Philippine Stock Exchange and no clearing and settlement at the Securities Clearing Corporation of the Philippines today, September 12, due to the suspension of clearing and settlement operations at the Philippine banking system," Ramon S. Monzon, PSE president and CEO, said in an advisory.

The PSE issued a separate announcement earlier on its Facebook page.

The PDS, which operates the trading floor for foreign exchange transactions, noted the standard procedures and rules for unscheduled holidays and force majeure situation will be observed and implemented once the markets resumes normal operations.

"Please be advised that all fixed income, repurchase agreement, and foreign exchange trading, clearing and settlement, transfer operations, as well as depository operations are suspended for today, September 12, 2017," the PDS said in a separate advisory.

Overnight on Wall Street, the S&P 500 Index surged over 1 percent to a record high close of 2,488 while MSCI's broadest gauge of the world's stock markets covering 47 markets also hit a new record high, having made its biggest gains in about two months.

The Philippine peso lost 3.5 centavos against the dollar at P50.905 on Monday, from 50.870 Friday, while the PSEi was up 26.56 points or 0.33 percent at 8,049.31.

More than 899.173 million shares, valued at P6.098 billion, were traded on the PSE. Winners led losers, 110 to 87, and 50 issues were unchanged. Foreign funds bought P3.193 billion of shares during the session and sold P3.425 billion for a net selling position of P232.006 million. — With Ted Cordero and Jon Viktor Cabuenas/VDS, GMA News