Stock trading will now run from 9:30 a.m. until 1 p.m., instead of its usual closing time of 12:10 p.m. Another adjustment will be made in January, with afternoon trading to run from 1:30 p.m. to 3:30 p.m.

The PSE, one of the smallest bourses in the region, said the re-introduction of the afternoon session will allow it to boost liquidity as this will help investors react to other markets in different time zones.

The initiative is also being implemented as a new system to facilitate cross-border trading among the Philippine, Malaysian, Thai and Singaporean bourses set to go online by the first quarter of 2012.

Reactions from stock brokers remain mixed on the issue, with some remaining skeptical that their overhead costs—mainly from hiring additional personnel—would see a disproportionate rise compared to gains made from higher trading volume.

Some also pointed to previous experiences of the PSE when it implemented then subsequently scrapped afternoon trading in 2002 due to shrinking market volumes amid the slowdown in the global markets.

Interest in reviving afternoon trading started under the stint of former PSE President Francis Lim in 2009.

Meanwhile, stocks advanced on Friday, the biggest gain in Asia, after the government said economic growth will accelerate and the central bank said it has “flexibility” to support expansion.

The Philippine Stock Exchange Index rose for a third day, jumping 3.2 percent to 3,999.65 at Friday’s close. The measure lost 6.8 percent this quarter, the worst since the three months ended December 2008.

“The government’s pronouncement is a good reminder there’s no fundamental problem with the Philippines,” said Jonathan Ravelas, chief market strategist at Banco de Oro Unibank Inc.

The stock measure sank to 3,721.22 on September 26, the lowest close since September 2, 2010, following a five-day selloff triggered by speculation Greece’s debt problem will spread and slow the global economy.

(Miguel Camus, Bloomberg News)