Philippine financial markets to shut as super typhoon hits Luzon
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PHILIPPINE currency, stock and bond markets will be closed on Monday (Sep 26) as super typhoon Noru barrelled into the main Luzon island, prompting President Ferdinand Marcos Jr to suspend work and school.
Marcos, in a Facebook post, said he has approved the recommendation of the disaster coordinating council to halt government work and school classes in Metro Manila and several regions on Monday.
Noru, called Karding locally, made landfall in Quezon province at 5.30 pm local time Sunday. Heavy to intense rains are expected over the capital region and agricultural provinces on the main Luzon island until early Monday morning, the weather bureau said. The typhoon is packing maximum sustained winds of 195 kilometres per hour (km/h) and gusts of up to 240 km/h.
The Bankers Association of the Philippines, the Philippine Stock Exchange and the Philippine Dealing System late on Sunday announced separately there will be no trading in the foreign exchange, stock and bond markets on Sep 26.
About 20 cyclones pass through the disaster-prone Philippines each year, causing loss of lives and damage to homes, infrastructure and agriculture.
Farmland that may be affected by the typhoon could reach 1.47 million hectares where 75 per cent of the nation’s standing rice crops are planted, the Department of Agriculture said on Sunday, which risks fanning inflation.
In 2013, super typhoon Haiyan killed more than 6,300 in the South-east Asian nation. In September 2009, typhoon Ketsana killed more than 460 people and caused 11 billion pesos (S$267.3 million) of damage to infrastructure and agriculture after dumping a month’s worth of rain on the capital region in a day.
Noru, the 11th tropical cyclone to hit the Philippines this year, could trigger Philippines’ catastrophe bonds, said Artemis, which monitors catastrophe bonds, insurance-linked securities and weather risk markets.
“Super typhoon Noru’s route across the Philippines will take it close to highly populated areas, with the capital city Manila likely to feel the effects of typhoon strength winds and significant rainfall,” said Artemis. “At such intense wind speeds, super typhoon Noru is a significant threat to the Philippines, in damage and loss-of-life terms.”
Preemptive evacuation were made in provinces that will be on the typhoon’s path particularly in coastal and disaster prone areas, reported local media including ABS-CBN and the Philippine Daily Inquirer.
As early as noon on Sunday, more than 2,500 people were stranded in various ports as sea travel was halted, the Philippine Coast Guard said. More than 40 domestic and 5 international flights were cancelled on Sunday, the Manila International Airport Authority said.
Ayala Land, one of the nation’s biggest developers, shut its shopping malls early and allowed shoppers to wait out the storm inside the facility for safety. SM Prime Holdings, the largest shopping mall operator, said free Wi-Fi and charging stations will be provided to customers.
The weather bureau warned of “at times torrential rains” in Metro Manila and over 2 dozen provinces through early afternoon Monday. “Widespread flooding and rain-induced landslides are expected, especially in areas that are highly or very highly susceptible to these hazard,” the weather bureau said.
Noru is forecast to track generally westward in the next 6-12 hours at 20 km/h, then north-westward. It will traverse the landmass of Central Luzon and emerge over the West Philippine Sea via the coastal waters of Zambales or Pangasinan. It will then continue tracking generally westward over the South China Sea. BLOOMBERG
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