The trading at the Pakistan Stock Exchange (PSX) was halted on Tuesday in the first five minutes as KSE-30 opened 6.97 percent lower and was trading at 12,609 points.
The KSE-100 index shed 1,826.70 points and was trading to 28,840.71 points, showing decline of 5.96 percent. At 11:30 am, trading was subsequently halted.
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Following the directions of the Sindh government, the Pakistan Stock Exchange has decided to observe lesser hours of trading till the lockdown continues. The PSX started trading at 11:00am on Tuesday.
Investors remained under selling pressure due to worsening of the situation caused by an increase in the number of coronavirus cases in Pakistan, analysts said, adding that investors also remained cautious ahead of the monetary policy announcement.
Market Halt
“Market halt” procedure has been introduced by SECP in PSX regulations in December of 2019. The action triggers when the KSE-30 index moves 5 % either way and remains there for five consecutive minutes. Since the scrip circuit breakers got extended to 7.50% this Monday, the index halt is now at 5%.
The objective of introducing market halt is to safeguard investors and market participants during volatile markets. During this halt, trading in all securities remains temporarily suspended in order to ensure a cooling off period and run a mark to market activity as a risk management measure.
